Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Sustainability Report
Economic, Environmental and Social Responsibility
2011
Sustainability Report
Economic, Environmental and Social Responsibility
For an appropriate interpretation of the information contained in this Sustainability Report, please refer to the Guide to the Report on pages 230-231. Abarth, Alfa Romeo, Chrysler, Dodge, Ferrari, Fiat, Fiat Professional, Jeep, Lancia, Maserati, Mopar, Ram, and SRT are registered trademarks of companies wholly or majority owned by Fiat S.p.A.
Contents
Contents
6 7 10 12 47 48 50 56 58 60 60 62 66 70 74 74 76 77 79 80 88 93 93 107 113 113 117 132 138 The commitment of the Group Letter from the Chairman Letter from the Chief Executive Ofcer A year of sustainability: facts and gures Sustainability Plan Economic dimension Group prole Presence in the world Automobiles Components and production systems Map of principal international agreements Corporate governance Corporate governance timeline Code of Conduct Relationships with organizations, associations and political parties Risk Management Sustainability governance Sustainability-focused entities Sustainability indexes and ratings Socially Responsible Investors Sustainable innovation Open innovation Innovation for clean technology Environmental dimension Ecological mobility 360 degree sustainable mobility Recovery Recycling Reuse Plants and non-manufacturing processes Environmental Management System Environmental performance and monitoring systems Logistics Non-manufacturing processes 143 143 147 160 167 172 184 193 193 193 201 201 204 205 205 207 208 209 210 210 212 215 219 219 230 230 232 236 236 239 246 252 254 256 260 261 262 Social dimension Employees Workforce insights Management and development Diversity and equal opportunity Work-life balance Occupational Health and Safety Industrial relations Product safety Group centers of competence Integrated approach to safety Dealer and service network Training for the network Reducing environmental impact Customers Customer relationship Recall campaigns Transparency in communication Vehicle quality Suppliers Supplier prole Supply chain standards Ongoing dialogue with suppliers Communities Group support for communities Appendix Guide to the Report Denitions, Methodology and Scope Materiality and stakeholder inclusiveness Further details Economic dimension Environmental dimension Social dimension Glossary Statements of assurance Index of GRI-G3.1 content Fiat on social networks Other corporate publications and web Contacts
iStockphoto.com/Mlenny Photography
If you do not know where you are going, every road will get you nowhere
Henry A. Kissinger
6 7 10 12
Letter from the Chairman Letter from the Chief Executive Ofcer A year of sustainability: facts and gures Sustainability Plan
A culture of responsibility is integral to Fiat-Chryslers business model, because we believe that the true value of a multi-national organization such as ours is also determined by its level of environmental awareness, respect for people, fair and transparent conduct in commercial relationships and positive contribution to local communities. Financial success can only be sustainable if it is achieved ethically. Together with the Groups top management, more than 197,000 people around the world put those values into practice every day through their commitment and dedication to making Fiat-Chrysler a strong and competitive group, while never losing sight of our moral obligation to contribute to the well-being of society as a whole and to the construction of a better future. That side of our organization is a rather private side seldom reported on in the press, but it involves people at every level, working away without fanfare, who understand the responsibilities associated with our activities, who give this organization its good name and carry its values with them out into the community. I want to thank all the men and women in our Group for their professional and personal contribution, for the dedication and passion that they contribute every day to the achievement of a higher goal. 2011 was a year of signicant achievement in a number of areas. On the environmental front, the Group continued to develop and apply concrete and affordable solutions for reducing fuel consumption and vehicle emissions, while maintaining high safety standards. The union between Fiat and Chrysler has enabled us to strengthen our focus on sustainable mobility by leveraging each partners strengths. Fiat is a recognized leader in high-efciency engine technologies, while Chrysler Group, with the signicant know-how developed in recent years, has been designated as the center of expertise for hybrid and electric technologies. In Europe, Fiat has been conrmed for the fth consecutive year as the leader among the best-selling brands for cars with the lowest average CO2 emissions levels and Fiat Group Automobiles continued its leadership in the natural gas market. In the United States, Chrysler Group will begin production in 2012 of a fully-electric version of the Fiat 500 for the North American market. Fiat Powertrain has continued development of solutions to lower the environmental footprint of vehicles. Application of second generation MultiJet diesel and TwinAir gasoline technologies can reduce CO2 emissions levels on cars to as low as 90 g/km. Efforts to meet the highest international safety standards have also been widely recognized. Eleven Chrysler Group vehicles were named Top Safety Pick for 2012 by the US Insurance Institute for Highway Safety, while with the new Lancia Thema and Fiat Freemont, Fiat Group Automobiles now has nine models that have achieved the maximum Euro NCAP rating. Centro Ricerche Fiat continued its research on innovative solutions for reducing fuel consumption and improving vehicle comfort and safety, with about 140 new patents granted or applications led during 2011.
Magneti Marelli continued its signicant contribution to development of automotive systems and components that optimize vehicle energy demand and improve trafc management. Signicant advances were also made once again this year in reducing the environmental impact of production processes. Total CO2 emissions for Fiat and Chrysler plants were 10% below the 2010 level and water consumption was down 18.5%. Health and safety in the workplace were also central to our efforts, which included investment of 270 million in prevention and safety in the workplace aimed at the overall well-being of our employees. In addition, we devoted signicant resources to development of our employees, including personalized training programs and career development initiatives. The total amount invested in employee training in 2011 was 23% higher than the prior year. Looking to the future, the integration with Chrysler will offer extraordinary opportunities in terms of professional growth, new perspectives and cultural enrichment, such as our Group has never seen. The continuing impacts of the global economic crisis and the current difculties in the Eurozone, in particular have been managed with a sense of responsibility and the constant objective of mitigating the social impacts on our employees. At the end of 2011, a new company-specic collective labor agreement was signed for Fiat Group employees in Italy, which provides signicant benets for everyone. For the Group, it represents a modern instrument that offers the exibility and governability of plants necessary to compete in the global marketplace. For employees, it preserves all existing rights and offers clear economic advantages associated with increased productivity and greater exibility in the use of overtime. In the US, the Chrysler labor contract was also renewed for another four years and the terms of that agreement ensure the company can remain competitive, while at the same time providing for recognition of the contribution of employees to Chryslers turnaround and long-term success. As you read on, you will nd more information on these and other initiatives, together with the ambitious targets that we have set for future years. Our vision for the future comes from the courage and determination to put ourselves to the test each and every day and change together for the better, constantly guided by our sense of responsibility toward those who have placed their trust in us.
10
ISO 26000
Guidance on social responsibility
Investors
Fiat is the leader for the lowest CO2 emissions in Europe at 118.2 g/km Fiat Group Automobiles leader in Europe for natural gas vehicles, with 65%
market share
TwinAir named International Engine of the Year 2011 2.2 billion spent on Research and Development
Global Carbon Disclosure Leadership Index and Carbon Performance Leadership Index
11
Chrysler Pentastar V-6 one of the 10 Best Engines cited for exceptional
fuel economy, emissions and power by Wards Automotive
36.5 million
local communities
80.3 million
environment
Fiat Freemont and Lancia Thema receive Euro NCAP 5 stars for safety and 11 Chrysler Group vehicles named Top Safety
Pick for 2012 270 million spent on Occupational Health and Safety (+44% over 2010)
12
Sustainability Plan
Sustainability Plan
Fiat Group believes that sustainability is not an objective in and of itself, but rather a journey of continuous improvement essential for long-term growth. Over the years, the Groups sustainability strategy has resulted in a variety of projects designed to promote increasingly sustainable mobility, help protect the environment and natural resources, ensure the health and safety of employees, invest in their professional development, and build a constructive relationship with local communities and commercial partners. The desire to continue growing in harmony with people and the environment is embodied in the Sustainability Plan. Each year, the Sustainability Plan reports the companys targets for the future and provides details on results achieved and approaches used. Maintain leadership in Europe for cars with the lowest CO2 emissions
page
16
31
pages
25-28
pages
39-40
13
pages 14-15
The commitment of the Group
Product
Continue to reduce CO2 and polluting emissions, and improve fuel economy Increase recoverability, recyclability and reusability of vehicles Further improve product safety
pages 16-25
Plants
Promote environmental awareness within the Group Continue to reduce environmental impact and optimize energy performance
pages 25-28
Logistics
Reduce environmental impact of logistics
page 29
Non-manufacturing processes
Reduce the environmental impact of employee commuting, business travel, ofces and Information Technology operations
page 30
Human resources
Offer equal opportunity Develop human capital Attract and retain the best talent Continue to promote and safeguard health and safety Promote work-life balance and employee well-being
pages 30-37
pages 37-38
Customers
Enhance the customer experience
pages 38-39
Suppliers
Promote social and environmental responsibility within the supply chain
pages 39-40
Community
Support local communities Support the professional development of young people
pages 41-42
14
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Introduction of women on the Fiat S.p.A. Board of Directors Assessment of Board of Directors performance Setting of minimum attendance requirement for Board of Directors meetings Average attendance of members to Board of Directors meetings: 93%
2012: inclusion of women for 20% of the Fiat S.p.A. Board of Directors 2013: independent assessment of Board performance 2012: introduction of a minimum attendance (2/3 of meetings) requirement for Board meetings
All standard audits extended to include assessment of ethical issues with particular reference to human rights, business ethics, conict of interest, corruption (see page 65) and discrimination issues
2012: further extension of all standard audits to include assessment of sponsorships, donations and entertainment expenses, when consistent with the specic audit risk assessment 2012: analysis of Code of Conduct violations and remedial actions taken in order to assess their effectiveness
15
Actions Continuous update of compliance system to keep it aligned with international best practice
2011 Results
Targets 2012: integration of Chrysler Group and Fiat S.p.A. compliance systems (Finance, Internal Audit, ERM) 2012: update of risk audit map according to international legal framework developments (i.e., UK Bribery Act, Spanish Ley Organica, etc.)
Commitment: Continuously update the risk management system to remain aligned with best practice
Scope Fiat Group Actions Continuous updating of the Enterprise Risk Management (ERM) system 2011 Results Training courses on updated ERM system for all sectors (excluding Chrysler Group) delivered Targets 2012: integration of ERM risk drivers for water-related risks 2012: integration of Chrysler Group in Fiat Group ERM Climate change: brainstorming workshop with representatives of main Group functions held to identify, analyze and evaluate new potential industrial risks and mitigation actions associated with climate change
Enhancement of capabilities and tools available to the Group for identifying, measuring, analyzing and managing pure risks with a focus on risks related to climate change, earthquakes, other environmental events
2012: development of a new quantitative methodology for identifying the main sites potentially exposed to meteorological risks in collaboration with an Italian specialized meteorological organization and a loss prevention consulting company
Earthquakes: new methodology developed to identify 2012: implementation of 2 pilot projects outside Italy sites potentially vulnerable to earthquakes and priority 2014: extension of methodology to signicant Italian actions dened; pilot project conducted at 22 Italian sites Magneti Marelli sites Environment: new methodology developed to identify, analyze and quantify insurable environmental risks; pilot project conducted at 3 sites Use of innovative software to provide real-time information within the Group on all pure risks (re, explosion, natural disasters) affecting corporate assets and business continuity VISIO@RISK software extended to all Group sites (excluding Chrysler Group) Extension of pure risks monitored through VISIO@RISK to include hailstorms and hurricanes
(see pages 71-73)
2012: consolidation of the use of VISIO@RISK through specialized training and activation of a dedicated help desk
Chrysler Group
Enhancement of capabilities and tools for identifying, measuring, analyzing and managing cyber or political risks
2012: analysis and assessment of cyber and political risks to evaluate the company exposure and management strategy
16
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Product
CO2 emissions and fuel economy
Commitment: Reduce CO2 emissions and improve fuel economy using a 360 degree approach
Scope Fiat Group Automobiles (FGA) Actions Introduction and development of a diversied portfolio of technology solutions for: ENGINES extension of second-generation MultiJet to diesel engines introduction of eco-Turbo evolution of Start&Stop extension of two-cylinder turbo engine (TwinAir turbo) to small cars introduction of TwinAir Naturally Aspirated on mini cars evolution of MultiAir technology TRANSMISSIONS extension of highly-efcient Dual Dry Clutch Transmission (DDCT) to small, compact and midsize cars introduction of a new generation of automatic transmissions with high efciency hydraulic coupling introduction of a high efciency All-Wheel Drive (AWD) system VEHICLES extension of use of High-Strength Steels (HSS) and Ultra High-Strength Steels (UHSS) to reduce weight while maintaining top level safety and structural performance aerodynamic efciency improvement and tire rolling resistance reduction to optimize vehicle energy demand increase in overall efciency of auxiliary systems (e.g., climate control, alternators, oil pumps) introduction of second-generation Gear Shift Indicator (GSI) on all new models 2011 Results For the fth year, Fiat brand had the lowest weighted average emissions (118.2 g CO2/km) among the top selling brands in Europe (source: JATO Dynamics) 65% of FGA cars sold in Europe recorded emissions at or below 120 g CO2/km and 79% at or below 130 g CO2/km 6% of car versions (model/engine) offered with emissions at or below 100 g CO2/km MultiAir technology extended to new Fiat Panda and new Lancia Ypsilon (accounting for 14% of gasoline passenger car sales) TwinAir turbo extended to new Fiat Panda and new Lancia Ypsilon Eco-Turbo introduced on Fiat Punto, Alfa Romeo Giulietta and MiTo Start&Stop extended to new Fiat Panda and new Lancia Ypsilon DDCT extended to compact segment and diesel engines (Alfa Romeo Giulietta gasoline and diesel) Smart alternator introduced on new Fiat Panda and new Lancia Ypsilon New Fiat Panda: extensive use of HSS (more than 70% of body weight), aerodynamic efciency improved (-3% Cx coefcient) and tire rolling resistance reduced (-30%) vs previous generation
(see pages 93-98, 101-104)
Targets 2012: maintenance of leadership among principal carmakers in Europe for cars with lowest weighted average CO2 emissions
2015: doubling of FGA car versions (model/engine) offered with emissions at or below 100 g CO2/km, vs 2011 (from 6% to 12%)
17
Actions Introduction and development of a diversied portfolio of technology solutions for: ENGINES adaptation of MultiAir technology to new engine applications introduction of new 1.4-liter MultiAir Intercooled Turbo engine development and launch of new Tigershark 16 valve 2.0-liter and 2.4-liter engines further applications of the efcient Pentastar V-6 engine extension of use of Start&Stop to North American market TRANSMISSIONS introduction of 9-speed transmission expansion of 8-speed transmission applications introduction of Dual Dry Clutch Transmission VEHICLES launch of a 40-mile per gallon vehicle extension of use of High-Strength Steels (HSS) to reduce weight while maintaing top level safety and structural performance introduction of electric power steering introduction of active grille shutters to improve vehicle aerodynamics
2011 Results
Targets
Pentastar V-6 engine extended to Jeep Wrangler Fuel Saver Technology (cylinder deactivation) incorporated in 80% of V-8 engines sold 8-speed transmission introduced in Chrysler 300 and Dodge Charger 6-speed automatic transmission introduced in Ram truck 5-speed automatic transmission with Pentastar V-6 introduced for Jeep Wrangler Start&Stop introduced on 2011 Jeep Wrangler in Europe Applications of high efciency and lightweight truck and SUV axles extended to the Ram 1500, in addition to Jeep Grand Cherokee and Dodge Durango Extensive use of HSS (approx. 60% of body weight) on Chrysler 300
(see pages 93-98, 101-104)
Maserati
-6% in CO2 emissions on all vehicles with new Introduction and development of a diversied 4.7- liter engine (Quattroporte S, Quattroporte GTS, portfolio of technology solutions for: Granturismo S, Granturismo S Automatica, GranCabrio, ENGINES new family of engines (research in downsizing GranCabrio Sport) vs previous models and/or turbo) Development of new Quattroporte continued Start&Stop TRANSMISSIONS increase in gearbox efciency VEHICLES low rolling resistance tires lighter and ultra-light materials (e.g., aluminum doors) improvement of aerodynamic efciency improvement of cooling and thermal management systems optimization of friction/lubrication introduction of smart accessories (Pulse Width Modulation Controller, Smart Alternator)
+6.4% in average fuel economy for passenger cars in 2014: +25% in fuel economy vs 2010 across product the US vs previous year range MultiAir introduced on Chrysler Ypsilon
18
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Scope Ferrari
Actions Introduction and development of a diversied portfolio of technology solutions for: ENGINES optimization of combustion reduction of friction and pumping losses research on turbo engines deactivation of cylinders TRANSMISSIONS increase of efciency (lubrication pump, pressure control system, overdrive performance) VEHICLES introduction of Smart Alternator new technologies for weight reduction (use of new high strength aluminum alloys, innovative joint technologies, thin wall thickness aluminum casting, etc.) brake optimization to minimize energy loss and increase efciency active aerodynamics
2011 Results -30% in CO2 emissions on vehicles sold in Europe vs 2007 -22% in CO2 emissions on FF vs 612 Scaglietti through the introduction of overdrive, Dual Clutch Transmission (DCT) system pressure control, second generation Carbon Ceramic Material (CCM) brakes with organic material pads (-10% disc dimensions), and High Emotion Low Emissions (HELE) kit, consisting of Start&Stop, continuous radiator fan control, continuous fuel pump control and electronic control of compressor for climate control system -20% in CO2 emissions on 458 Spider with HELE kit vs F430 Spider -30 kg in weight on 2012 Ferrari California vs 2008 model Active aerodynamics concept applied to the 599XX (evolution package)
(see page 97)
Market leadership maintained for natural gas vehicles 2012: maintenance of leadership position for natural in Europe: 65% market share with a total of approx. gas vehicles in Europe 42,000 natural gas vehicles sold 2012: introduction of natural gas two-cylinder (TwinAir) Largest natural gas range in Europe with a total turbo on new Fiat Panda of 8 models 2013: extension of the application of natural gas Over 736,000 Fiat Flexfuel and TetraFuel vehicles sold in Brazil (representing 98% of total sales)
(see pages 99-100)
Study for small hybrid city car started Study of benets from the use of biomethane in vehicles started, including analysis of technologies for biomethane production and benchmarking of best practice at European level
(see pages 88, 100)
Evaluation and testing of other sustainable solutions for the future: electric/hybrid solutions for urban mobility hydrogen/natural gas blends biomethane Fiat Group Automobiles (FGA) and Chrysler Group
Road testing of 20 hydrogen/natural gas Fiat Pandas delivered to the Region of Lombardy (Italy) started
2012: continuation of road testing of 20 hydrogen/natural gas Fiat Pandas delivered to the Region of Lombardy and assessment of results
105 Ram pickup Plug-In Hybrid Electric Vehicles launched as part of demonstration eet (140 vehicles) in cooperation with US Department of Energy
(see page 89)
19
Targets 2012: approx. 50% of US sales and 70% of product The commitment of the Group
(see page 100) portfolio with exible fuel capability
Ferrari
Commitment: Promote use of low environmental impact technologies and encourage eco-friendly behavior by customers
Scope Fiat Group Automobiles (FGA) Actions Provision of information to customers on eco-compatible maintenance of vehicles 2011 Results Green CHECK-UP maintenance program extended to further markets (Austria, Portugal, Greece, Czech Republic, Slovakia, Spain, Germany and UK) and educational campaign on responsible driving continued Website www.genuineparts.atgroup.com launched in several markets, focusing on the role of maintenance in reducing the environmental impact of the vehicle Provision of information to customers on eco-compatible use of vehicles Extension of the use of eco:Drive software through: its introduction in new models/markets its evolution to make eco-driving more fun and exciting (e.g., social network functions) Distribution of eco:Drive software continued, including versions for natural gas vehicles and light commercial vehicles (approx. over 82,000 users registered since launch in 2008 with 4,600 ton reduction in CO2 emissions) Eco:Drive available on the new Fiat Panda Eco:Drive extended to US, Canada and Brazil First version of eco:Drive Mobile, which makes data available on smartphones, presented Fiat and Magneti Marelli continued their participation Promotion of projects to educate young student in EcoPatente, the project promoted by the Italian drivers toward more eco-responsible driving NGO Legambiente to educate young people attending Italian driving schools toward a more eco-responsible use of cars EcoPatente project extended to Spain
(see pages 105-106)
2012: launch of eco:Drive Live, making real-time data on eco-driving available on the car dashboard
20
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
All FGA light commercial vehicles available with 2014: compliance with Euro 6 standard for all new Euro 5 engines, in addition to all cars already available gasoline cars registered in Europe since 2010 (see page 105) Note: compliance deadlines for implementation of Euro 6
regulation are 1 September 2014 for new type-approvals; 1 September 2015 for all new vehicle registrations
Early implementation of regulations for the reduction of polluting emissions (e.g., NOx, particulates) through the development and introduction of new technology solutions Approx. 40% of US Chrysler Group Heavy Light Duty Truck eet compliant with Environmental Protection Agency (EPA) Mobile Source Air Toxics requirements (vs 25% minimum needed according (see page 105) to the phase-in requirements)
2013: early compliance with the Euro 6 standard for 40% of FGA car versions (model/engine)
Chrysler Group
2012: surpassing of US Mobile Source Air Toxics compliance requirements by complying early to Heavy Light Duty Truck vehicle phase-in percentages
Note: compliance deadline for implementation of the regulation for 100% of vehicles sold is end of 2014
Targets
2012: entire range in Europe equipped with infotainment devices (Blue&Me, Uconnect)
2012: introduction of a next generation Uconnect infotainment unit, integrated with eco:Drive
Chrysler Group
SiriusXM Trafc service available on about 40% of 2011 model year US vehicles with navigation system
(see page 103)
21
LCA analysis of body pre-paint process continued, with toxicological analysis of normal production chemical substances involved in this process compared with best-in-class Results of survey on the application of LCA by major suppliers analyzed
2015: involvement of selected suppliers in common research and development projects based on LCA Questionnaire developed for select Tier 1 suppliers in analysis and aimed at evaluating the environmental order to evaluate their sensitivity to LCA issues and their impacts of the strategic components of the vehicle availability to collaborate on specic projects
(see page 111)
Commitment: Comply with REACH regulation (Registration, Evaluation, Authorisation and Restriction of Chemicals) with focus on Substances of Very High Concern (SVHC)
Scope Fiat Group Automobiles (FGA) Actions Establishment of operational procedures for the management of REACH regulation and identication of critical issues 2011 Results Targets
Dedicated intranet website for internal communication 2012: development of software for the integrated of REACH regulation contents created management of all REACH requirements (SVHC reporting, registration, safety cards, etc.)
Fiat Group Automobiles (FGA) Maintenance of system of control for reducing or eliminating SVHC Chrysler Group Screening of SVHC in car components conducted
(see page 109)
Commitment: Increase use of recycled and natural/renewable materials and remanufactured components
Scope Fiat Group Automobiles (FGA) Actions Identication of components that can be made from recycled materials Monitoring of use of recycled materials in components Increase in the use of natural/renewable materials Recycled nylon used in manifold covers Recycled foam used in Jeep Grand Cherokee and Dodge Durango seat cushions 2011 Results 41 SPE Innovation Award for automotive plastics (Environmental) won by FGA for new car application of a bio-based PA 10/10 on diesel engine pipes
(see page 108)
st
Targets
Chrysler Group
Extension of the use of recycled materials in plastic parts Extension of the use of recycled foam in seat cushions
2012: use of post-consumer recycled materials in wheel liners 2012: use of at least 5% recycled and renewable resources in seat cushions in new compact segment (see page 107) programs, beginning with Dodge Dart
22
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Actions
2011 Results
Targets 2013: development of eco-design tool tailored to the automotive sector 2015: integration of eco-design tool tailored to the automotive sector with LCA analysis
Questionnaire for Tier 1 suppliers developed, in Development of eco-design systems to support order to raise awareness of the use of recycled products designers in choosing recycled, natural and and to involve suppliers in the implementation of a renewable materials sector-specic eco-design tool for the automotive industry
(see page 111)
Dedicated network of dismantling agents developed in Turkey (81 agents) Improvement of energy recovery management at end of vehicle life cycle Pilot industrial installation created to recover residual energy from vehicles following shredding at end of life cycle (uff)
(see pages 108-110)
23
Product safety
Commitment: Continue to improve preventive, active and passive safety of vehicles
Scope Fiat Group Automobiles (FGA) Utilization of on-board equipment using new Human Machine Interface (HMI) with expansion to vehicle safety communications Chrysler Group Actions 2011 Results Hands-free phone communications and Voice Control phone number selection available on all new models (Fiat Freemont, new Panda, Lancia Voyager, (see page 199) Thema, new Ypsilon) Hands-free communications available on all models Targets 2012: introduction of Voice Control on all new models The commitment of the Group
Safety inspections integrated in Summer Check-Up program including special offer on the purchase of parts inuencing vehicle safety Specic safety-related features in the user and maintenance handbook of Fiat Punto Evo, new Panda, Freemont, Alfa Romeo MiTo, new Lancia Ypsilon introduced
Offering of a range of driver-assist systems: Collision mitigation Adaptive Cruise Control (ACC) Lane Departure Warning (LDW) Blind-spot Monitoring (BSM) Rear Cross Path Detection Rear camera Adaptive Front light System (AFS)
Website www.genuineparts.atgroup.com launched in several markets, providing customers with information on the role of maintenance for vehicle safety 2012: achievement of Euro NCAP 5-star rating for new Euro NCAP 5 stars achieved by Lancia Thema and Fiat Freemont (in addition to the Fiat 500, Bravo, Grande models in medium and large segments Punto, Alfa Romeo Giulietta, MiTo, 159 and Lancia Delta) Low-speed collision mitigation under development ACC, BSM, Rear Cross Path Detection and AFS introduced on Lancia Thema BSM and Rear Cross Path Detection introduced on Lancia Voyager Rear camera available on Fiat Freemont, Lancia Thema and Voyager Innovative child restraint available on new Fiat Panda and new Lancia Ypsilon Energy-absorbing front-end introduced on new Fiat Panda and new Lancia Ypsilon Alfa Romeo Giuliettas hood architecture applied on new Fiat Panda Active Pedestrian Protection system available on Fiat Freemont, Lancia Thema and Voyager 2012: introduction of low-speed collision mitigation on mini and small cars and ACC on compact and large cars
2012: innovative child restraint available on all new models 2012: introduction of energy-absorbing front-end on all new models 2012: application of Alfa Romeo Giuliettas hood architecture on all new models
Product Safety & Innovation unit created, aimed at modeling real accidents to optimize the design of safety systems
(see pages 193-197)
24
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Actions Extension of active, passive and preventive safety features to additional models and introduction of new features
2011 Results
Targets
Parkview rear camera offered on Ram Trucks, Dodge 2012: extension of ACC, Blind-spot Monitoring, Rear Grand Caravan, Journey, Charger, Durango, Jeep Grand Cross Path Detection and Adaptive Seat Belt features to Cherokee, Chrysler Town & Country and ParkSense rear further models assist offered on the same models plus Jeep Liberty ParkSense front assist offered on Jeep Grand Cherokee and Chrysler 300 in certain markets SafetyTec standard safety package, Parkview rear camera and Adaptive Cruise Control extended to Chrysler 300 Blind-spot Monitoring with Rear Cross Path Detection 2013: introduction of a range of new active safety offered on Dodge Grand Caravan and Durango, Chrysler features 300 and Town & Country, Jeep Grand Cherokee Rollover Crash Sensing extended to Dodge Durango, Jeep Grand Cherokee Forward Collision Warning offered on Dodge Charger, Chrysler 300, Jeep Grand Cherokee, Dodge Durango Smart brake incorporated into 100% of vehicles
(see pages 195-196)
Development of safety systems for electric vehicles Hydraulic Brake Assistant introduced on all models Skyhook dynamic damping control available on all models Active Roll Bar available on all GranCabrio versions
Maserati
Offering of a range of driver-assist systems: latest generation Vehicle Dynamic Control Skyhook dynamic damping control for suspension systems Adaptive Front light systems and Xenon headlights (AFX) Brake Prell Active Roll Bar
2012: introduction of AFX and Brake Prell systems on New Maserati Quattroporte
Ferrari
Technology transfer from Formula 1 experience to on-road vehicles, in terms of both vehicle systems and dynamics controls
Introduced on FF: 4WD (Four-Wheel Drive) system second-generation Carbon Ceramic Material (CCM) brakes with organic material pads third-generation Magnetorheological Suspension (see page 197) Control (SCM3) Test on correlation between technical vehicle data and drivers biometric signals performed
2012: continuing
Research projects with soon-to-be/recent graduates for the development of upgraded Human Machine Interface
25
2013: road testing of a range of vehicles, as part of the European DRIVE C2X project, to assess the reliability of V2V and V2I technologies following initial results of Methodology for extensive road testing developed (see page 86) SAFESPOT project
Prototype of a telematic system, alerting drivers when 2013: assessment of application of further V2V and V2I they are approaching accident blackspots, developed functions in accident blackspots within the Easy Rider project On-board architecture for Vehicle-to-Infrastructure Improvement of road safety performance (V2I) communication developed in collaboration with through use of telematic technologies and Centro Ricerche Fiat, as part of EcoMove funded project infomobility services: warning when vehicle is approaching accident Software modules developed for the recognition of blackspots or roadworks the accident messages coming from a simulator visualization of road signs via on-board systems
Magneti Marelli
2013: development in Turin, as part of the Easy Rider project, of the rst demo installations based on V2I communication for on-board display of road signs and accident blackspots
Note: deadline moved due to rescheduling of project, affecting all the partners
Plants(1)
Environmental awareness
Commitment: Promote environmental awareness within the Group
Scope Fiat Group Actions Formulation and dissemination of updated Environmental Guidelines Preparation and distribution of a training kit for personnel working within the Environmental Management System Update of the group-wide intranet platform to enhance best practice sharing with Chrysler Group Training kit distributed in all plants in Italy 2011 Results Targets 2012: update of Environmental Guidelines to stress the importance of water management and to integrate existing Chrysler Group Environmental Policy 2012: distribution of the training kit to all plants worldwide 2013: extension of the platform to include Chrysler Group scope as well
Commitment: Expand and consolidate management system for environmental Key Performance Indicators (KPI)
Scope Fiat Group Actions Implementation of a new IT application to collect and manage Environment, Health and Safety data 2011 Results Technical/functional specications formulated for the new application Number of monitored and reported performance indicators extended, with reference to water and waste (Chemical Oxygen Demand, Biochemical Oxygen Demand, Total Suspended Solids concentration and hazardous waste per unit value) Targets 2013: new information system available
(1)
In the plants section when Chrysler is indicated, the scope includes Chrysler Group assembly and stamping plants in order to be consistent with Fiat Group Automobiles scope of operations.
26
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Targets 2012: ISO 14001 certication for all plants operating in 2011 worldwide
Adoption of World Class Manufacturing (WCM) system, considered one of the highest standards globally
-22.8% vs 2009 in water consumption per vehicle produced at Fiat Group Automobiles (FGA) plants worldwide (from 5.84 to 4.51 m3/vehicle) and -15.9% vs 2010 (from 5.36 to 4.51 m3/vehicle); -20% vs 2010 in water consumption per vehicle produced at Chrysler plants worldwide (from 4.53 to 3.62 m3/vehicle) Implementation of measures to improve reuse and recycling of water continued at all 13 plants located in areas with scarce water resources
2014: up to -40% vs 2009 (2) in water consumed per unit value at Group plants worldwide (with specic targets for each sector)
Note: details for each sector are available in the sustainability section of the Group website
2012: continuation of water-related risk assessment for all plants located in sensitive areas and implementation of appropriate measures to reuse and recycle water 2012: setting of specic targets for heavy metals levels in water discharge
97.4% recycling index at Fiat Group Automobiles plants worldwide Water quality target set for Fiat Powertrain, Comau and Teksid in addition to Fiat Group Automobiles and Magneti Marelli
2012: maintenance of water recycling index of Fiat Group Automobiles over 95% and setting of water recycling index target for Chrysler
2014: maintenance levels of Biochemical Oxygen Demand (BOD), Chemical Oxygen Demand (COD) and Total Suspended Solids (TSS) present in water discharge (see pages 119-121) from Fiat Group plants worldwide below local regulatory levels, including after reductions in water consumption
Note: details for each sector are available in the sustainability section of the Group website
(1) (2)
Industrial revenues are those attributable to the activity of plants directly controlled by the Group. As Chrysler Group LLC was formed in mid-year 2009, Chrysler Group-specic targets utilize a 2010 baseline.
27
Actions Optimization of waste management based on the specic characteristics of the country in which each plant is located
2011 Results
67.2% of waste recovered at Fiat Group plants worldwide, with performance varying by sector (e.g., 95.3% for Fiat Group Automobiles, 95.9% Chrysler) -1.4% vs 2009 in waste generated per vehicle produced at Fiat Group Automobiles plants worldwide (from 199.1 to 196.3 kg/vehicle) and -6% vs 2010; +0.6% vs 2010 in waste generated per vehicle produced at Chrysler plants worldwide (from 218.5 to 219.9 kg/ vehicle) -9.2% vs 2009 in hazardous waste generated per vehicle produced at Fiat Group Automobiles plants worldwide (from 7.6 to 6.9 kg/vehicle) and -32.4% vs 2010; -39.3% vs 2010 in hazardous waste generated per vehicle produced at Chrysler plants worldwide (from 2.8 to 1.7 kg/vehicle)
(see pages 122-124)
2014: up to 95% of waste recovered at Group plants worldwide (with specic targets for each sector)
Note: details for each sector are available in the sustainability section of the Group website
2014: up to -20% vs 2009 (1) in waste generated per unit value at Group plants worldwide (with specic targets for each sector)
Note: details for each sector are available in the sustainability section of the Group website
2014: up to -30% vs 2009 (1) in hazardous waste generated per unit value at Group plants worldwide (with specic targets for each sector)
Note: details for each sector are available in the sustainability section of the Group website
Application of the best available techniques for reduction of Volatile Organic Compounds (VOC) in paint shops
-2.9% vs 2009 in VOC emission levels from the car body paint process at FGA plants worldwide (from 44.3 to 43 g/m2) and -0.9% vs 2010; -3.1% vs 2010 in VOC emission levels from the car body paint process at Chrysler plants worldwide (from 19.5 to 18.9 g/m2)
(see page 118)
2014: up to -50% vs 2009 (1) in VOC emissions per square meter at Group plants worldwide (with specic targets for each sector)
Note: details for each sector are available in the sustainability section of the Group website
Guidelines for the design and purchase of new 2012: dissemination of Noise Management Guidelines equipment formulated and disseminated to limit at Chrysler Group (see page 124) external noise Pre-assessment analysis integrated into the Fiat Biodiversity Index methodology Assessment of initiatives implemented based on Fiat Biodiversity Value Index and new action plan designed for the Fiat Powertrain plant in Verrone (Italy) and the Magneti Marelli plant in Venaria Reale (Italy) Application of Biodiversity Guidelines extended to main sites adjacent to or within protected areas (national, regional, sites of Community interest, special protection zones, oases, etc.) or areas of high biodiversity value
(see pages 125-127)
Formulation of guidelines for the identication and safeguarding of protected species and biodiversity
2012: application of pre-assessment analysis in all plants in order to detect possible sites of interest to apply Fiat Biodiversity Index methodology
Reduction in the use of Ozone Depleting Substances (ODS) and other Substances of Signicant Impact (SSI) for health and the environment at Group plants worldwide Alignment with international regulations (e.g., REACH, TRA) on the use of potentially dangerous substances in manufacturing processes
2012: denition of specic actions to reduce use of SSI -3.2% vs 2010 of ODS in equipment at Group 2014: elimination of ODS from equipment at Group worldwide (excluding Chrysler Group) (see page 119) plants worldwide excluding Chrysler Group, committed instead to eliminating ODS as equipment is replaced Compliance with REACH and TRA maintained in each of the countries of application 2012: ongoing compliance with REACH and TRA
PCB eliminated at Magneti Marelli plants in addition Elimination of Polychlorinated Biphenyls (PCB) to Fiat Group Automobiles, Chrysler Group, Maserati, from equipment at Group plants worldwide Fiat Powertrain, Comau and Teksid plants (see page 124)
(1)
As Chrysler Group LLC was formed in mid-year 2009, Chrysler Group-specic targets utilize a 2010 baseline.
28
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Commitment: Optimize the Groups energy performance and promote use of renewable energy
Scope Fiat Group Actions Implementation of an Energy Management System and certication of plants under ISO 50001 international standard 2011 Results 6 Group plants adopted the Energy Management System developed by Fiat Group Automobiles in addition to 34 plants that had adopted it in 2010 (together representing 70% of total energy consumption of Fiat Group excluding Chrysler Group and 35% including Chrysler Group) 6 Group plants obtained ISO 50001 certication in addition to 11 that had already achieved the EN 16001 certication in 2010 (together representing approx. 11% of total energy consumption of Fiat Group excluding Chrysler Group and 5.5% including Chrysler Group) Denition of measures and technologies to reduce energy consumption and CO2 emissions per unit value -6.9% vs 2009, on comparable scope of activities, in energy consumed per vehicle produced at Fiat Group Automobiles plants worldwide (from 5.35 to 4.98 GJ/ vehicle); -3.3% vs 2010 (from 5.15 to 4.98 GJ/vehicle); -16.8% vs 2010, on comparable scope of activities, in energy consumed per vehicle produced at Chrysler plants worldwide (from 10.60 to 8.82 GJ/vehicle) -20.2% vs 2009, on comparable scope of activities, in CO2 emissions at Fiat Group Automobiles plants worldwide (from 0.470 to 0.375 tons CO2/vehicle); -10.3% vs 2010 (from 0.418 to 0.375 tons CO2/vehicle); -16.7% vs 2010, on comparable scope of activities, in CO2 emissions at Chrysler plants worldwide (from 0.878 to 0.731 tons CO2/vehicle) Green Factories laboratory (reduction in energy consumption and CO2 emissions) continued with a focus on: global analysis of energy consumption reductions, development of customized high-efciency lighting solutions, energy recovery solutions for industrial applications Promotion of generation and use of energy from renewable sources Proactive management of regulatory risks and opportunities, through continuous monitoring of current and future emissions trading regulations in countries where the Group operates (e.g., EU-ETS, CRC Energy Efciency Scheme) 2014: up to -26% vs 2009 (1) in energy consumed per unit value at Group plants worldwide (with specic targets for each sector)
Note: details for each sector are available in the sustainability section of the Group website
Targets 2014: roll out of Fiat Energy Management System to main Fiat Group plants (representing approx. 92% of total energy consumption) and ISO 50001 certication of those plants
Note: deadline moved to include Chrysler Group in the scope
2014: up to -30% vs 2009 (1) in CO2 emissions per unit value at Group plants worldwide (with specic targets for each sector)
Note: details for each sector are available in the sustainability section of the Group website
19.3% of total (direct and indirect) energy consumed 2012: maintenance of level achieved at all Fiat Group by the Group (excluding Chrysler Group) from renewable plants excluding Chrysler Group that will evaluate the sources (11.8% in 2009); 9.8% including Chrysler Group use of energy from renewable sources Group compliance with emissions trading regulations 2012: ensure Group compliance with emissions trading ensured where Group is present regulations in countries where present 2 Group plants in Europe (accounting for total energy generation of about 412,000 GJ per year) participated in EU-ETS Evidence Pack under the UK CRC Energy Efciency Scheme completed Application of BAT at the Teksid Italian plant of Carmagnola continued ensuring energy consumption savings of 50% compared with old technologies (annual savings of more than 20,000 GJ)
(see pages 128-131)
Application of Best Available Technologies (BAT) to reduce energy consumption and environmental footprint of new and restructured plants
2012: continued application of BAT in Teksid Polish plant of Skoczow 2012: completion of new Fiat Group Automobiles (FGA) plants in China and Serbia that will adopt innovative technologies and solutions to reduce energy consumption (approx. -20%) compared with levels at existing FGA plants worldwide
(1)
As Chrysler Group LLC was formed in mid-year 2009, Chrysler Group-specic targets utilize a 2010 baseline.
29
Logistics
Environmental impact
Commitment: Reduce environmental impact of logistics
Scope Fiat Group Actions Formulation and dissemination of Green Logistics principles Denition of a standard set of environmental KPIs 2011 Results Targets 2012: extension of Fiat Group Green Logistics principles, possibly adapted, to Chrysler Group Standard set of environmental KPIs extended and 2012: further extension of environmental KPIs and adopted for all Group sectors (excluding Chrysler Group) adoption of this common framework across the Group Monitoring process completed for all Group sectors 2012: setting of targets for all Group sectors in Europe in Europe 2014: extension of monitoring process to all Group
(see page 134)
Monitoring of vehicle emissions standards started for 2012: continuation of monitoring of vehicle emissions transport not managed directly by the sectors (excluding standards for transport not managed directly by the Chrysler Group) in preparation for introduction of sectors and start of monitoring by Chrysler Group emission standards already applicable for directly managed transport Clauses introduced in Group contracts for transport directly managed by sectors (excluding Chrysler Group) permitting use of low-emissions vehicles only (at least 50% of eet compliant with Euro IV or stricter standards). Authorized access for Euro III-V vehicles only already activated for all Group plants (for directly managed transport)
(see pages 134-135)
2012: continuation of phase-in of restricted access clauses in contracts with transport suppliers managed directly by sectors (excluding Chrysler Group)
2012: -58,000 tons of CO2 vs 2008 (compared with Feasibility study conducted for activation of bi-directional Northern EuropeSouthern Italy rail routes equivalent volumes transported by road) through the further extension of rail transport and establishment of CO2 emissions reduction targets (see page 135) for 2012-2014 -12,100 tons in CO2 emissions vs previous delivery mode through an increase in the use of solutions to optimize transport capacity (e.g., Streamlined Delivery Project, etc.) at Fiat Group Automobiles and Fiat (see pages 136-137) Powertrain in Europe -2% vs 2010 in disposable cardboard packaging for vehicle components (from 6.0 to 5.9 kg/vehicle) at European plants -78% and -21% vs 2010 in disposable wood packaging respectively for shipments from Italy to Serbia and from Italy to Brazil managed under the World Material Flow (WMF) program Monitoring started of the disposal of packaging and protective materials shipped by Italian Parts & Services warehouses: 14% of total amount of parts shipped 2012: further reduction in CO2 emissions through an increased solutions to optimize transport capacity
Fiat Group
2012: -7% vs 2010 in disposable cardboard packaging for vehicle components (from 6.0 to 5.6 kg/vehicle) at European plants 2012: -31% vs 2010 in disposable wood packaging (from 15.6 to 10.7 kg/m3 ) for shipments from Italy to Brazil FIASA plant managed under the WMF program
2012: -8% (600 tons) vs 2011 in disposal of packaging and protective materials shipped by Italian Parts & Services warehouses (from 14% to 13% of total amount (see page 137) of parts shipped)
30
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Non-manufacturing processes
Environmental impact (1)
Commitment: Reduce Information Communication Technology-related energy consumption
Scope Fiat Group Actions Introduction of new low environmental impact hardware 2011 Results Targets
-400 MWh vs 2009 (approx. 250 tons of CO2) through 2012: -590 cumulative MWh vs 2009 (approx. 380 introduction of high-efciency power supply units tons of CO2) through the introduction of additional high-efciency power supply units 9,950 video monitors replaced with eco-efcient devices (EnergyStar and EPEAT Silver/Gold) 2012: replacement of a further 11,000 video monitors with eco-efcient devices 2012: further replacement and/or virtualization of servers 2014: completion of server replacement
Consolidation of servers, introduction of new, more efcient servers or implementation of initiatives to reduce server footprint
-13,900 MWh in energy consumed vs 2010 (approx. 7,200 tons of CO2) through the elimination and/or replacement of physical servers and creation of virtual servers
(see page 139)
Chrysler Group
Reduction in PC power consumption by automatically powering down PCs not in use in the evening
-2,288 MWh in energy consumed vs 2010 (approx. 1,622 tons of CO2) by powering down PCs (see page 139) not in use in the evening
Human Resources(2)
Equal opportunity and diversity
Commitment: Promote internal professional development
Scope Fiat Group Actions 2011 Results Targets
Development of internal job posting program for 2012: implementation of the job posting program 326 open positions managed and a total of 3,201 salaried and professional positions by region, in accordance with local requirements and internal applications received under Chrysler Groups constraints internal job posting program (for US and Canada (see page 146) salaried employees)
Targets 2012: revision in accordance with local context and extension of the course to all professionals worldwide
Number of disabled employees monitored and 2012: increase in the number of diversity candidates corrective measures implemented to promote job employed by region, in accordance with local opportunities and further increase the number of requirements and constraints (see pages 164-166) disabled people employed 2012: design and implementation of a pilot project to support newly-hired disabled individuals in the initial phase of employment (e.g., tutorship, on-the-job training, etc.) in EMEA region
The World Class Administration project has been interrupted. (2) As of September 2011, four Regional Operations Groups have been established to manage car manufacturing and sales activities within the entire Fiat Group: NAFTA (Canada, Mexico and the US), EMEA (Europe, Africa and Middle East), LATAM (Latin America) and ASIA.
(1)
31
Actions Monitoring of global implementation of equal opportunity principles in relation to: compensation levels, annual salary review plan, performance and leadership appraisals and promotions
2011 Results Results of monitoring process analyzed and corrective actions implemented, as necessary
Targets
Regional/country-based recruitment processes monitored to ensure EOE performance (e.g., at Fiat Group Automobiles, where feasible, the same percentage of male and female candidates was considered in each recruitment process)
(see pages 160-161)
Work-life balance
Commitment: Promote work-life balance
Scope Fiat Group Actions Promotion of initiatives that enhance work-life balance 2011 Results Pilot project to design and implement work-life balance programs launched for Italian employees. Initiatives implemented: Reti Amiche on the Job: public administration and company services accessible on site for both hourly employees (only Fiat Group Automobiles FGA Miraori site) and salaried employees Welfare worker service improved and increased (only FGA Miraori) Drivers license renewal service opened on-site (only FGA Miraori) Skin Cancer Prevention Day (only FGA Miraori) Internal Technology and Innovation Meetings and communication events increased Summer camp registration fees discounted to aid families with more than one child New summer camp for employees children organized in association with Juventus Football Club MIO service in response to employees questions on labor matters inaugurated VALYou initiative launched to offer goods and services at competitive prices
(see pages 158-159, 168, 171, 181)
Targets 2012: implementation of work-life balance initiatives by region, in accordance with local requirements and constraints 2012: implementation of a exible working program (work from home and other exible solutions to facilitate eldercare and family management) by region, in accordance with local requirements and constraints
Pilot project launched in Brazil allowing employees to do volunteer work for qualifying nonprot organizations during work hours: over 4,700 employees volunteered at 10 qualifying nonprot organizations approx. 18,200 volunteer hours donated
(see page 224)
2012: continuation and further extension of the volunteer work program in LATAM region with new initiatives 2012: implementation of corporate volunteer programs by region, in accordance with local requirements and constraints
2012: continuation of analysis of worldwide monitoring process outcomes for professionals and managers and (see pages 163-164) implementation of corrective actions, as necessary External recruitment agencies engaged by Group 2012: denition of target partner universities by region companies informed of the companys role as Equal to provide diverse candidates for intern and entry-level Opportunity Employer (EOE), where not already required positions by law
32
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Approx. 39,500 employees evaluated (100% of 2012: continuation of evaluation of all managers and managers and professionals and 36% of salaried professionals and an increasing percentage of salaried (see pages 147-148) employees employees)
Note: gradual extension to all salaried employees contingent on market recovery
Improvement of initiatives to enhance commuting 2012: continuation of specic initiatives and evaluation to and from the Miraori site (Italy) continued impacting of plan effectiveness approx. 18,000 employees. Major actions concerned the creation of new public transport routes in collaboration with local authorities, the design of a specic web tool for increasing the use of car pooling, improvements to entrances/drop-off areas and the promotion of communication activities Mobility plan implemented to improve employee commuting to and from the Italian Maserati site in Modena impacting approx. 600 employees: car pooling project launched, improvements to entrances/drop-off areas completed, communication activities implemented
(see page 138)
33
2012: denition and implementation of long-term performance-related incentive plans for key talent
Commitment: Promote continuous improvement through the direct participation and contribution of workers
Scope Fiat Group Actions Encouragement of proposals from employees 2011 Results 1.6 million improvement proposals collected. Average of 12 suggestions per person received
(see page 115)
2012: implementation of managerial skills training programs by region, in accordance with local requirements and constraints 2012: continuation of training initiatives aimed at enhancing cultural diversity awareness
34
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Commitment: Continue internal and external certication process for the Occupational Health and Safety Management System
Scope Fiat Group Actions Extension of OHSAS 18001 certication 2011 Results Targets
103 plants OHSAS 18001 certied, with approx. 2014: OHSAS 18001 certication of all Group plants 121,000 employees (97.7% of Group employees in scope operating worldwide in 2012, including those operated for 2010, excluding Chrysler Group) as a joint venture
Note: deadline moved to include Chrysler Group in the scope
Approx. 2,000 internal audits (+300% vs 2010) and 158 external audits conducted, covering a total of approx. 121,000 employees
(see page 173)
Commitment: Minimize ergonomic risk in the workplace taking into account factors such as age and gender
Scope Fiat Group Actions Implementation of Ergo-Uas methodology in ergonomic workstation design Implementation of European Assembly WorkSheet (EAWS) methodology in the assessment of the ergonomic risks of workstations 2011 Results Ergo-Uas methodology implemented at 6 Italian plants (approx. 21,000 employees involved)
(see pages 177-178)
Targets 2012: implementation of Ergo-Uas methodology in all assembly plants in Italy 2012: extension of EAWS methodology to all assembly plants in Europe
35
New management information system for safety data Development and implementation of a management information system for the collection, implemented at 6 pilot plants analysis, classication and management of preventive and corrective measures for accidents, near misses and unsafe acts Implementation of a new IT application to collect and manage Environmental, Health and Safety data (including near misses, unsafe acts and occupational illnesses) Development and implementation of a group-wide health and safety training platform Technical/functional specications formulated for the new application
(see page 173)
Health and Safety First project revised and rolled out at 6 plants (about 6,000 employees involved in addition to over 16,000 already involved in 2010) New health and safety training platform developed for 2013: implementation of the new health and safety Fiat Group in Italy training platform in Italy
Denition and progressive implementation of training standards and information tools for health and safety specialists within the Group Development and implementation of the Top Ten Safety project: 10 key health and safety initiatives
Training standards and information tools extended to Italian health and safety specialists Top Ten Safety project extended to all operating plants in Europe as of 2010 (involving approx. 59,000 employees)
2012: extension of training standards and information tools to health and safety specialists worldwide 2012: progressive extension of the Top Ten Safety project to all Group plants operating worldwide in 2011
Feedback from 18,000 course participants in Italy Provision of the online course Health and Safety 2013: customization and extension of the online course analyzed in the Ofce for ofce workers on workstation to all ofce workers worldwide (see page 176) ergonomics, emergency response, electric hazards, risks of overexertion and correct use of video monitors
Targets
2012: monitoring and implementation of action plan at sites where risk is assessed as most likely
36
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Actions
2011 Results Information on prevention against the seasonal u virus distributed and u vaccinations provided to employees worldwide HIV/AIDS awareness campaign continued at Comau, Fiat Group Automobiles, Fiat Powertrain, Magneti Marelli and Teksid plants in Brazil (approx. 26,000 employees involved) Drug and alcohol awareness campaigns launched for about 39,000 employees at Italian sites
Targets 2012: continuation of awareness campaigns and ad hoc targeted prevention measures
Chrysler Group
Distribution of information and provision of medical support to employees to prevent the spread of infectious diseases, promote personal hygiene and increase employee knowledge of their personal health risks
2012: extension of the Tips on Health section to Group intranet sites worldwide
Biometric screening checks for cholesterol, blood pressure and glucose provided to approx. 11,500 Chrysler Group employees (5.8% of the total Group workforce and 21% of the Chrysler Group workforce) Health Risk Assessment program completed for approx. 9,000 Chrysler Group employees (4.6% of the total Group workforce and 16% of the Chrysler Group workforce)
(see pages 180-181)
2012: increase in participation for biometric screening checks to 35% of the Chrysler Group workforce
2013: increase in participation in the Health Risk Assessment program to 31% of the Chrysler Group workforce (2012) and to 68% of the Chrysler Group workforce
Fiat Group
Design of health promotion program focused on smoking cessation, correct nutrition, diabetes control, drug and alcohol awareness, stress management
Health promotion program designed according to World Health Organization (WHO), US Occupational Safety and Health Administration (OSHA), European Agency for Safety and Health at Work (EU-OSHA) and International Labour Organization (ILO) principles, including smoking cessation, nutrition, control of diabetes and drug and alcohol campaigns, stress management program, etc. Smoking Cessation and Good Control of Diabetes programs continued at 4 sites (about 12,000 employees involved)
(see pages 180-181)
2012: implementation of well-being programs by region, in accordance with local requirements and constraints
37
22,000 employees and their families in Italy joined Establishment of a supplementary health care plan (FASIFIAT) for the Groups hourly and salaried the plan (of which over 16,000 hourly and 5,500 salaried) (see pages 181-182) employees in Italy, as per agreements between Fiat S.p.A. and trade unions
Targets 2012: maintenance of the number of training hours provided in 2011 and setting of a FGA worldwide target
Commitment: Improve skill level of network technicians in diagnosis, repair and maintenance of fuel-efcient engines
Scope Fiat Group Automobiles (FGA) and Chrysler Group Actions Design and offer of targeted training courses 2011 Results Approx. 155,000 training hours provided in EMEA region to Fiat Group Automobiles technicians Approx. 438,700 training hours provided worldwide to Chrysler Group technicians (+12% vs 2010)
(see page 203)
Targets 2012: maintenance of the number of training hours provided in 2011 and setting of a FGA worldwide target
Commitment: Support dealer network in developing skills to manage challenging market conditions
Scope Fiat Group Automobiles (FGA) Actions Launch of Effect, the masters program in dealership management targeted at owners and managers of dealerships 2011 Results Effect masters program continued with: 2 modules for Italian dealers 3 modules for international dealers
(see page 202)
Targets 2012: continuation of the Effect masters program with 3 additional modules
Approx. 2,000 training days provided to all Fiat Group 2012: continuation of the Customer First: Shoulder to Automobiles dealers (approx. 400) in Italy and to approx. Shoulder program 200 dealers in Europe Customer First: Shoulder to Shoulder program launched
(see page 201)
(1)
As of September 2011, four Regional Operations Groups have been established to manage car manufacturing and sales activities within the entire Fiat Group: NAFTA (Canada, Mexico and the US), EMEA (Europe, Africa and Middle East), LATAM (Latin America) and ASIA.
38
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Commitment: Promote decentralized training solutions to facilitate course participation, reducing time, costs and environmental impact of travel
Scope Fiat Group Automobiles (FGA) Actions Offer of online training solutions for after-sales personnel 2011 Results Approx. 272,000 online training hours delivered to sales people and 42,000 hours delivered only to aftersales personnel in EMEA region (+16% vs 2010)
(see page 203)
Targets 2012: provision of +30% online training hours to EMEA region after-sales personnel vs 2011 and setting of a worldwide target
Environmental impact
Commitment: Promote environmental responsibility throughout the dealer and authorized service network
Scope Fiat Group Automobiles (FGA) Actions 2011 Results Targets
Environmental Guidelines adopted for the Formulation and dissemination of Environmental 2012: encouragement of environmental awareness construction of new FGA-owned dealerships Guidelines relating to materials, equipment and within the private dealer network through dissemination (see page 204) of the Environmental Guidelines management processes to promote a reduction in the environmental impacts of the dealer network
Customers
Customer experience
Commitment: Enhance customer relationship and satisfaction
Scope Fiat Group Automobiles (FGA) and Chrysler Group Actions 2011 Results Targets 2012: extension of stakeholder engagement activities to FGA and Chrysler Group customers in a further 10 European markets
Stakeholder engagement activities extended to FGA Implementation of stakeholder engagement activities by encouraging customer feedback and customers in major European markets (Italy, France, Spain and Germany). Customers given feedback on responding, as appropriate improvements made in areas identied and/or engaged in dening dealership experience Mobile Customer Service project implemented on target population of approx. 151,000 users in Italy and other major European markets (UK, France, Germany and Spain) Enhancement of customer service experience Saturday service hours offered by 77% of total US dealers (1,900): +9% vs 2010 Express service offered by 31% of total US dealers (750): +26% vs 2010 Development of skill base of Customer Contact Center operators to achieve excellence in customer service 20,000 training hours provided (+10% vs 2010) to phone agents of Arese Customer Contact Center serving European countries 9,000 training hours provided to phone agents at North America Customer Contact Centers
2014: increase in the number of North America dealers offering extended service hours (weeknight and weekend hours) 2014: increase in the number of North America dealerships offering express service 2012: 40 hours training per person (excluding new hire training) to phone agents of Arese Customer Contact Center serving European countries: +10% vs 2011
2012: 20 hours training per person (excluding new hire training) to phone agents at North America (see pages 205-209) Customer Contact Centers
39
Provision of training and formulation and Guidelines on responsible selling formulated and dissemination of guidelines on responsible selling disseminated to FGA Capital S.p.A. (FGAC) sales force of nancial services and credit managers throughout Europe
(see page 208)
Introduction of specic questions on the clarity and completeness of sales force explanation of nancial offers in European Customer Satisfaction Index survey 2012: extension of FGAC training programs on responsible credit to dealer sales force Guide to ethics in communication formulated and circulated
(see page 208)
Suppliers
Sustainability in the supply chain
Commitment: Promote a culture of sustainability among employees managing supplier relationships
Scope Fiat Group Actions Provision of online training on corporate governance and sustainability 2011 Results Targets
Course provided to Chrysler Group Supplier Quality 2012: provision of course to all SQE and buyers in Engineers (SQE) and buyers in US, Canada and Mexico Poland, Turkey, Brazil, China and India and to Chrysler (see page 215) Group SQEs and buyers in Europe, China, India and (more than 200 employees) South Korea Environmental and social targets (sustainability audits and management of self-assessment questionnaires for select suppliers) included in system of variable compensation for Fiat SQE managers and their team (see page 215) members 2012: continuation of application of environmental and social targets to variable compensation system of Fiat SQE managers and their team members and introduction of the system to Chrysler Group SQE managers and their team members
2011 Results
Targets 2012: adoption of shared Sustainability Guidelines for Suppliers across Fiat Group 2012: continuation of introduction of contractual clauses on adherence to Sustainability Guidelines in new Fiat Group purchase agreements
40
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
2011 Results Additional environmental and social performance indicators in evaluation of Fiat potential suppliers introduced Sustainability rating incorporated in Chrysler Group supplier scorecard overall performance
Targets 2012: introduction of additional environmental and social performance indicators in evaluation of potential Chrysler Group suppliers
2012: continued application of supplier sustainability rating impacting awarding of Chrysler Group supplier (see page 213) new business and start of application of the process at all Fiat suppliers
Self-assessment questionnaire answered by a 2012: improvement and standardization of further approx. 1,235 suppliers (representing sustainability self-assessment questionnaires based on approx. 37% of purchases by value) with an average the Fiat template (see pages 213-215) questionnaires score of 87/100 Analysis of questionnaire results completed 2012: continued distribution and analysis of
(see page 214) questionnaires
Risk map for supply chain dened and used for 2012: improvement and adoption of a common denition of Fiat audit/questionnaire plans (see page 214) risk map within Fiat Group 2012: performance of additional audits of most signicant suppliers by internal SQEs (40) and third party (30) 2012: development of a standard action plan template
51 audits of most signicant Fiat suppliers performed Performance of environmental and social audits by internal Suppliers Quality Engineers (37 audits) and at suppliers worldwide third parties (14 audits) in Europe, India and China Work towards a conict mineral-free supply chain Support of supplier sustainability awareness
Participation of Chrysler Group in AIAG (Automotive 2012 (1): development of a template for suppliers to Industry Action Group) working group on conict report their source(s) for certain minerals that may minerals pending reporting requirements (see page 211) originate in a conict region 2,190 suppliers trained on responsible working conditions via in-person and computer-based learning 2012: provision of course to all Chrysler Group buyers, SQEs and continued deployment to suppliers worldwide 2012: provision of online course to Fiat suppliers based on AIAG course
2012: involvement of a total of 270 supplier plants in Total of 174 supplier plants involved in WCM (see page 216) WCM program program during the period 20092011
(1)
Deadline pending release of disclosure guidelines by the US Securities and Exchange Commission.
41
Community
Local community
Commitment: Promote social and economic development of local communities
Scope Fiat Group Automobiles (FGA) Actions Continuation of rvore da Vida project aimed at improving quality of life in the community of Jardim Terespolis (Brazil) through: social, cultural and educational activities training courses the Cooperrvore cooperative support and counseling center for community families strengthening of local community engagement through dedicated networks 2011 Results Approx. 14,000 people beneted from the project during the period 20042011 Approx. 9 million invested in 2011 considering projects rvore da Vida Jardim Terespolis, rvore da Vida Capacitao Prossional and rvore da Vida social and cultural partnerships Approx. 500 graduate students beneted from the project rvore da Vida Capacitao Prossional during the period 20062011 Cidados do Mundo 2011 Award for Corporate Social Responsibility from the newspaper Hoje em Dia won by the rvore da Vida project Nossa Betim sustainable city initiative launched (www.nossabetim.com.br)
(see pages 223-224)
Chrysler Group
Support for United Way initiative for the improvement of health care, education and income in disadvantaged communities
Targets 2012: continuation of nancial support to charitable organizations serving populations affected by natural disasters
42
Sustainability Plan
Target exceeded Target achieved or in line with plan Target partially achieved Target postponed
Targets 2012: continuation of the project 2012: intensication of communication activities between TechPro2 locations and authorized aftersales network in order to promote the offering of apprenticeship opportunities
Chrysler Group
Continued support of FIRST Robotics program for high school students: approx. 90,000 donated more than 500 students involved 28 employees involved as mentors 900 hours of mentor-time provided
(see pages 224-226)
2012: continuation and expansion of FIRST Robotics program and sponsorship of Lego League teams for middle school students
Bruce Dale
All you need is the plan, the road map, and the courage to press on to your destination
Earl Nightingale
Economic dimension
47 60 74 79
Group prole
Economic dimension
47
Group prole
Fiat Group is an international automotive group that designs, produces and sells vehicles for the volume market under the Fiat, Alfa Romeo, Lancia, Abarth and Fiat Professional brands, as well as luxury and performance cars under the Ferrari and Maserati brands. The Group has increased its global reach through its alliance with Chrysler Group, whose product portfolio includes Chrysler, Jeep, Dodge, Ram and SRT vehicles. Fiat Group also operates in the components sector, through Magneti Marelli, Teksid and Fiat Powertrain, and the production systems sector, through Comau.
Economic dimension
(1) (2) (1) (2)
As of 5 January 2012, Fiat S.p.A.s interest in Chrysler Group increased to 58.5%. As of January 2012, the activities of Fiat Powertrain were transferred to Fiat Group Automobiles.
48
Economic dimension
Group prole
Highlights
Fiat Group worldwide ( million)
2011
including Chrysler Group (1) excluding Chrysler Group
2010 (2)
2009 (2)
Europe
Net revenues Trading prot/(loss) Prot/(loss) for the year Investments in tangible and intangible assets R&D expenditure (3) Net industrial (debt)/cash Employees at year-end (no.)
Highlights by sector are provided at pages 236-237.
36.2% 43.7% 77 51
(1)
Data includes Chrysler Group from June 2011. Data relates to Continuing Operations. Data includes capitalized R&D and R&D charged directly to the income statement. (4) Data includes Chrysler Group.
(2) (3)
49
Worldwide
197,000
Employees NAFTA(1) Mercosur (2)
155
Plants Rest of world
77
R&D centers
36.0% 30.6% 47 16
19.0% 22.7% 19 5
8.8% 3.0% 12 5
(1) (2)
Includes US, Canada and Mexico. Includes Argentina, Brazil, Uruguay, Paraguay and Venezuela.
Economic dimension
50
Economic dimension
Group prole
Automobiles
Fiat Group Automobiles
Fiat Group Automobiles designs, produces and sells automobiles under the Fiat, Alfa Romeo, Lancia and Abarth brands, and light commercial vehicles under the Fiat Professional brand. In Europe, it also distributes Jeep brand vehicles.
Fiat
The world over, Fiat brand cars are synonymous with a fresh, upbeat style. Simplicity, quality and a constant striving for innovation are core to the DNA behind the popularity and success of the entire range of this quintessential symbol of Italian motoring. The 500 which led the brands return to the North American market in 2011 symbolizes the new Fiat. Highlights for the year included launch of the TwinAir version of the 500 and the exclusive special series by Gucci, produced in collaboration with the iconic Italian design house. Other new products included the Freemont the first vehicle to come out of the alliance with Chrysler Group which was awarded the prestigious Euro NCAP 5 stars and, in December, the third generation Panda, the latest evolution of a model with more than 31 years of success. Completing the year was the release of the 2012 model year Punto, the latest refresh in an extensive lineup that includes the Bravo, Qubo, Dobl, Sedici, Idea and Linea.
And for the fifth consecutive year, Fiat has been confirmed eco-leader with the lowest weighted average CO2 emissions among the top selling brands in Europe (source: JATO Dynamics), reflecting a long-standing commitment to the environment that this year led to creation of the new Air Technologies brand for Fiats exclusive eco-technologies, which have been applied across the entire range.
51
Alfa Romeo
The advanced technology, Italian styling, outstanding performance and pure driving pleasure of the new 4C Concept (presented at the Geneva Motor Show in March 2011) embody the new Alfa Romeo. This compact supercar is a bridge between the Alfa of today and the Alfa of tomorrow, combining a sporting heritage that has impassioned generations of enthusiasts with efficiencies of the present and technologies of the future. It boasts innovative technologies and materials typical of supercars (carbon, aluminum, rear-wheel drive) together with technologies already available on Alfa Romeos other models such as the 1750 cc direct injection turbo gasoline engine, the Dual Dry Clutch Alfa TCT automatic transmission and the Alfa DNA selector for dynamic vehicle control which provide high performance and a sporty feel combined with bestin-class fuel efficiency. Also of note are the Quadrifoglio Verde versions of the Giulietta and MiTo, symbols of an increasingly versatile brand whose models are designed for everyday driving, ensuring practicality, functionality, comfort and safety. The Giulietta Quadrifoglio Verde is also available with an impressive 235 hp 1750 TBi engine.
safety rating. With the Voyager, Lancia has added an Italian accent to the most successful North American Multi Purpose Vehicle (MPV) of all time to create an exclusive top-of-the range MPV for the European market. These new models join the Musa city limousine and the compact Delta saloon, which offers the spaciousness and comfort of a luxury car.
Abarth
Synonymous with power, speed, innovation and Italian design, Abarth has been producing and selling on-road sports vehicles since 2007. Over the years, the brand founded by Karl Abarth in 1949 has become an icon in the world of motorsports through numerous victories on the track, a line of legendary models developed in partnership with the Fiat brand and the enormous success of its conversion kits. In addition to the small but wicked Abarth 500 the landmark model that relaunched the brand the range also includes the Abarth 500C, the Abarth Punto and a series of special edition models such as the Abarth 695 Tributo Ferrari and other models released in 2011 including the Abarth 500 Cabrio Italia, the Abarth 695 Competizione, the Abarth Punto Super Sport and the Abarth Punto Scorpione. Also in 2011, the brand expanded the 500 range with the launch of the Abarth 595 Turismo and Competizione. The brand also produces several competition models that feature in their own mono-brand championships, including the Abarth 500 Assetto Corse and Abarth 500 Rally, soon to be joined for the 2012 season by the new Abarth 695 Assetto Corse. y
Lancia
The visionary Vincenzo Lancia united the seemingly distant worlds of elegance and technology to create a brand that has become an icon of Italian excellence. The combination of Lancias passion and style with the American vitality and substance of Chrysler has resulted in a rebirth of the brand. The defining attributes of style, substance and attitude are exemplified in the new range of models resulting from the fusion of two cultures that are unique, but have a common objective: to create cars with a truly distinctive character and design. Cars like the new Ypsilon launched in May 2011, the 5-door gem that is small in size but big in comfort and content, exclusive yet affordable; or the new Thema and Voyager unveiled in October concrete examples of the fusion between two worlds that are far apart geographically yet very close in their essence. The Thema, based on the new Chrysler 300, is the brands first global flagship and an able competitor in the most challenging and prestigious car segment. In November it was awarded the Euro NCAP 5 star
Economic dimension
52
Economic dimension
Group prole
Fiat Professional
Taking care of customers also means designing and building the right vehicles to meet their professional ambitions. Fiat Professional the Fiat Group Automobiles brand dedicated to commercial vehicles was created to partner businesses, both large and small, with a range of vehicles adapted to their needs. Unveiled in May 2011, the new Ducato is the latest evolution of a model that has enjoyed
over 30 years of success and offers the best in terms of payload and volume, as well as potential configurations. Easy to handle and responsive, the Scudo has a comfortable, spacious interior capable of seating up to nine people. The Dobl Cargo (named Van of the Year 2011) is top in its class in terms of payload, economy, comfort and safety. The range was also expanded during the year to include the new Work Up version. The new Strada pickup is the perfect solution for transporting even the bulkiest items in city traffic. And the compact, efficient Fiorino is the most easy-to-handle vehicle in its class. These models are accompanied by the Fiat brand range of vans based on car models, such as the Bravo, Punto and Panda. Lastly, Fiat Professionals commitment to the environment and sustainable mobility includes the most extensive range of natural gas/gasoline vehicles in the market, which are offered under the Natural Power brand.
Maserati
For nearly a century, this legendary brand has produced unique cars recognized throughout the world for their unmistakable allure, elegance and technological excellence. The Maserati brand offers cars such as the Quattroporte the ideal balance between luxury and sportiness, Italian style and engineering excellence; or the GranTurismo the modern 2-door, 4-seat coup, which combines power with elegance and a futuristic design with surprising practicality. The prestigious range also includes the GranCabrio, the brands first ever four-seat cabriolet. The excellence found in Maseratis on-road vehicles is often derived from its experience on the racetrack, where it has a long and glorious heritage that continues today with the GranTurismo MC Trofeo mono-brand trophy and the victory of the Quattroporte Evo in the 2011 International Superstars Series. During the year, Maserati presented the new GranCabrio Sport at the Geneva Motor Show, expanding its offering of 4-seat cabriolets to appeal to customers looking for something extra in sporting style and dynamic performance, without compromising the GranCabrios intrinsic elegance. At the Frankfurt Motor Show in September, Maserati presented its new SUV concept vehicle, an all-time first that continues the brands tradition of uniting sportiness with luxury.
53
Ferrari
The ultimate symbol of sporting excellence, Ferrari needs no introduction. Its reputation has been built through numerous Formula 1 titles (16 times winner of the Constructors championship and 15 times winner of the Drivers championship) and, of course, an impressive series of legendary GT models cars unique for their design, performance and pure driving pleasure that represent the best of Made in Italy the world over. The brand continued that prestigious tradition with the new models introduced in 2011. The Geneva Motor Show in March was the venue for the world debut of the FF, a revolutionary mid-front mounted V-12 with four seats and four-wheel drive the most versatile, high-performance on-road model in the brands history. Also in Geneva, Ferrari unveiled the 458 Italia with the High Emotion Low Emissions (HELE) system offering CO2 emissions as low as 275 g/km (a 15% reduction over the basic model), making it the best in its class. At the Frankfurt Motor Show in September, the brand debuted the new 458 Spider, a mid-rear engined 8-cylinder with folding hardtop, a world first incorporating an innovative solution patented by Ferrari. Also in Frankfurt, the company showcased its new Tailor-Made program designed for customers seeking even more exclusive customization for their Ferrari.
Economic dimension
54
Economic dimension
Group prole
Chrysler Group
Chrysler Group, formed in 2009 to establish a global strategic alliance with Fiat(1), produces Chrysler, Jeep, Dodge, Ram, Mopar, SRT and Fiat brand vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Groups culture of innovation, first established by Walter P. Chrysler in 1925, and Fiats complementary technology that dates back to its founding in 1899. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. Headquartered in Auburn Hills, Michigan, Chrysler Groups product lineup features some of the worlds most recognizable vehicles, including the Chrysler 300 and Town & Country, Jeep Wrangler, Dodge Durango, Ram 1500, Jeep Grand Cherokee SRT8 and Fiat 500. Chrysler Group vehicles are sold in more than 120 countries around the world.
Chrysler
The Chrysler brand has delighted customers with distinctive designs, groundbreaking technology, craftsmanship and intuitive innovation all at an extraordinary value since the company was founded in 1925. The Chrysler brand continued that tradition in 2011 with a rejuvenated, stylish, well-crafted product lineup. Every 2011
model vehicle the brand sold was all-new or significantly refreshed. This succession of innovative product introductions propels the brands standing as the leader in design, engineering and value. Design with purpose puts the premium for the Chrysler brand in the product, not the price. The Chrysler brand portfolio includes the new Chrysler 300 flagship sedan, the Chrysler Town & Country minivan and the Chrysler 200 sedan and 200 Convertible.
(1)
55
Jeep
Built on more than 70 years of legendary heritage, Jeep is the authentic SUV brand with class-leading capability, craftsmanship and versatility for people who seek extraordinary journeys. The Jeep brand delivers an open invitation to live life to the fullest by offering a full line of vehicles that continue to provide owners with a sense of security to handle any journey with confidence. The Jeep vehicle lineup consists of the Compass, Grand Cherokee, Liberty, Patriot, Wrangler and Wrangler Unlimited. To meet consumer demand around the world, all Jeep models are also sold outside North America and all are available in right-hand drive versions and with gasoline and diesel powertrain options.
The Ram Truck brand has the most innovative lineup of full-size trucks on the US market. Ram Truck has emerged as a full-size truck leader by investing substantially in new products, infusing them with great looks, refined interiors, durable engines and features that further enhance their capabilities.
SRT
In 2011, Chrysler Group officially elevated its in-house performance division the Street and Racing Technology (SRT) team to a separate company brand. The brand uses a successful product development formula to design, engineer and build benchmark American high-performance vehicles for Chrysler, Jeep and Dodge. Five proven hallmarks are used to achieve this goal: awe-inspiring powertrains; outstanding ride, handling and capability; benchmark braking; aggressive and functional exteriors and race-inspired and high-performance interiors. The SRT lineup includes the Dodge Challenger SRT8 392, Dodge Charger SRT8, Chrysler 300 SRT8 and Jeep Grand Cherokee SRT8. All four vehicles share a common powerplant the new 6.4-liter (392 cubic-inch) HEMI V-8 engine that features more horsepower and more torque than ever, while intake and exhaust technologies lead to improved fuel efficiency.
Dodge
For nearly 100 years, Dodge has defined passionate and innovative vehicles that stand apart in performance and in style. Building upon its rich heritage of muscle cars, racing technology and ingenious engineering, Dodge offers a full line of cars, crossovers, minivans and SUVs built for top performance from power off the line and handling in the corners, to high-quality vehicles that deliver unmatched versatility and excellent fuel efficiency. Dodge offers innovative functionality combined with class-leading performance, exceptional value and distinctive design. In 2011, Dodge built on the momentum of introducing six allnew or significantly refreshed products. With the new Dodge Durango and Dodge Charger and significantly revamped Grand Caravan, Journey, Avenger and Challenger, Dodge has one of the youngest dealer showrooms in the US with more new product coming.
Ram Truck
Ram Truck continues to establish its own identity and clearly define its customer since its launch as a standalone vehicle brand. Creating a distinct brand for Ram trucks has allowed the brand to concentrate on how core customers use their trucks and what new features they would like to see. Whether focusing on a family that uses its half-ton truck day in and day out, a hard-working Ram Heavy Duty owner or a business that depends on its commercial vehicles every day, Ram has the truck market covered.
Economic dimension
56
Economic dimension
Group prole
Mopar
Mopar is Chrysler Groups service, parts and customer care brand. With the creation of the Chrysler Group and Fiat S.p.A. partnership, Mopar is extending its global reach, integrating service, parts and customer care operations in order to enhance dealer and customer support worldwide. Mopars global portfolio includes more than 500,000 parts and accessories which are distributed in more than 120 countries. Its reputation with racing and other vehicle enthusiasts dates back to 1937. Mopar (a simple contraction of the words MOtor and PARts) is the source for all genuine parts and accessories for Chrysler Group and Fiat Group Automobiles brands. Mopar parts are unique in that they are engineered with the same teams that create factory-authorized vehicle specifications a direct connection that no other aftermarket parts company can provide.
Magneti Marelli
The company is an international leader in the design and production of advanced automotive systems and components: from lighting to engine control systems, from electronic systems to suspensions and shock absorbers, from exhaust systems to components for the aftermarket and motorsport. Through a process of continuous innovation, Magneti Marelli
57
seeks to leverage its know-how and the Groups expertise in electronics to develop intelligent systems and solutions that contribute to the evolution of safe and environmentallysustainable mobility, as well as enhancing the passenger experience. The company has been a major contributor to the enormous technological advances in the automotive sector in recent years. This is demonstrated by the innovative components developed for the Groups major new models (e.g., Alfa Romeo Giulietta, Fiat Ducato, Fiat Panda and Lancia Ypsilon), as well as for other major automakers, based on over 90 years of know-how and proven excellence in research and innovation.
cylinder heads and engine components. The company continually focuses on the technical features of its products to meet the specific and increasingly demanding needs of the automotive industry. Teksids competitive advantages include: a high level of automation; upgrading technology to continuously improve quality standards; and close integration with the product development of its customers, which include the major global producers of cars, trucks, tractors and engines.
Comau
With 23 sites in 13 countries and 40 years of experience in industrial automation, Comau provides its customers worldwide body welding and assembly systems, and machining and assembly for mechanical systems, in addition to a wide range of industrial robots, offering maximum quality, reliability and flexibility. Comau supports customers from idea to implementation providing automated production systems that integrate products, processes and services, and delivering turnkey solutions, which include design, construction, installation, production startup and, subsequently, maintenance. The company is a leader in the search for innovative technologies to continuously improve processes. Constant investment in research & development has enabled Comau to position itself as an international full-service provider of engineering solutions to the automotive industry, as well as the aerospace, petrochemical, steel and foundry industries. In addition, through eComau solutions, it works with customers to introduce energy-saving technologies through plant and equipment upgrades and new installations.
Teksid
With over 80 years of experience and production of around 600 tons per year of engine blocks, cylinder heads, engine components, parts for transmissions, gearboxes and suspensions, Teksid is the worlds largest producer of gray and nodular iron castings. Through Teksid Aluminum, it is also a world leader in production technologies for aluminum
Economic dimension
58
Economic dimension
Group prole
CHINA
Fiat Group Automobiles (FGA), Fiat Powertrain and Guangzhou Automobile Group Co Ltd (GAC Group) JV (50%) for: - production of engines and passenger cars for the Chinese market - exclusive distribution of FGA cars in the Chinese market Magneti Marelli and SAIC (Shanghai Automotive Industry Corporation) Agreement for the establishment of a JV (50%) for the production of hydraulic components for the Automated Manual Transmission (AMT) of Magneti Marelli Magneti Marelli and Wanxiang Qianchao Company Limited Agreement for the establishment of a JV (50%) for the production and sale of shock absorbers and related products for the Chinese market Teksid, SAIC (Shanghai Automotive Industry Corporation) and YMC (Yuejin Motor Corporation) JV (50% Teksid, 25% SAIC, 25% YMC) for the production of cylinder blocks for cars in gray and nodular iron
ITALY
Fiat Powertrain and General Motors 50% stake in VM Motori S.p.A. (VM); VM is a long-established company specialized in the design and manufacturing of diesel engines
EUROPE
Fiat Group Automobiles (FGA) and Crdit Agricole JV (50%) for the nancial services activities of FGA, Chrysler Group, Jaguar and Land Rover in Europe
JAPAN
Fiat Powertrain and Suzuki Motor Corporation Licensing agreement for the production of MultiJet diesel engines
59
INDIA
Fiat Group Automobiles (FGA), Fiat Powertrain and TATA Alliance including JV (50%) for: - production of B and C-segment cars, engines and transmissions - exclusive distribution of FGA cars in the Chinese market Magneti Marelli, Suzuki and Maruti Suzuki JV (51%) for the production of electronic control units for diesel engines Magneti Marelli and Sumi Motherson JV (50%) for the production of lighting and engine control systems Magneti Marelli and Krishna Two JVs (50%) for the production of exhaust systems Magneti Marelli and Endurance Technologies JV (50%) for the production of shock absorbers Magneti Marelli and Unitech Machines JV (51%) for the production of electronic automotive systems
SERBIA
Fiat Group Automobiles (FGA) and the Serbian government JV (66.7% FGA and 33.3% Serbian government) for the production of FGA passenger cars at the plant in Kragujevac Magneti Marelli and Johnson Controls Automotive S.r.l. JV (50%) for manufacturing and sale of instrument panels, door panels, oor consoles and rear quarters to Fiat Group Automobiles Serbia
UNITED STATES
Economic dimension
Fiat (1) and Chrysler Group Global strategic alliance in the automotive sector
TURKEY
Fiat Group Automobiles (FGA) and Ko Group Listed JV (37.86% FGA and 37.86% Ko Group) for the development and production of passenger cars and light commercial vehicles, including a compact commercial van and a passenger car for Fiat, Peugeot and Citron Fiat Group Automobiles and Opel Agreement with Opel to supply vehicles based on the Fiat Dobl platform. These vehicles will be manufactured at the Tofas plant in Bursa
POLAND
Fiat Group Automobiles and Ford Collaboration for the development and production of A-segment cars (Fiat 500 and Ford KA)
(1)
60
Economic dimension
Corporate governance
Corporate governance
By managing its business in an ethical, transparent and responsible way, Fiat Groups system of corporate governance creates value for all stakeholders. For many years, Fiat S.p.A. has had a system of corporate governance which is aligned with international best practice and the principles endorsed by the Italian Corporate Governance Code for listed companies (issued in December 2011) with amendments adopted to address the specic characteristics of the Group. Over time, Fiat S.p.A.s corporate governance system has been expanded to incorporate a set of values, rules and procedures which reect regulatory changes and improvements in corporate governance practice.
1992
Publication of Fiat S.p.A. first Environmental Report
2002
Institution and adoption of Internal Dealing Regulations that establish disclosure and conduct requirements for Relevant Persons. These Regulations remained in place until March 2006, when the European Market Abuse Directive, which governs such matters, took effect
2004
Publication of rst Annual Report on Corporate Governance, prepared in accordance with guidelines issued by Assonime and Emittenti Titoli S.p.A. and endorsed by Borsa Italiana S.p.A. Implementation of an Enterprise Risk Management process based on the 2004 Enterprise Risk Management Integrated Framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Publication of the rst Fiat S.p.A. Sustainability Report
1993
Publication of Fiat S.p.A. first Code of Ethics, replaced in 2003 by the Code of Conduct
1997
Adoption of a system of Values and Policies
2003
Approval of the first Compliance Program (Italian Legislative Decree 231/2001) which was updated in subsequent years to reflect developments in legislation and interpretation that expanded the scope of Italian Legislative Decree 231/2001 to include new categories of crimes Approval of Guidelines for the Internal Control System Issuance of Guidelines for Significant Transactions and Transactions with Related Parties
2005
Issuance of Whistleblowing Procedures for reporting alleged violations of the Code of Conduct Approval by Fiat S.p.A. shareholders of requirements for the annual assessment of the independence of members of the Board of Directors Approval of the Group Procedure for the Engagement of Audit Firms aimed at ensuring the independence of the external auditors
1999
Establishment of the Internal Control Committee and the Nominating and Compensation Committee. In 2007, the Nominating and Compensation Committee was separated into the Nominating and Corporate Governance Committee and the Compensation Committee
61
2006
Certication of the System of Internal Control over Financial Reporting (ICFR) established pursuant to Section 404 of the US Sarbanes-Oxley Act. Although the company is no longer listed on the New York Stock Exchange (NYSE), management and Internal Audit have continued their activities relative to the evaluation and monitoring of the ICFR System. Those activities also provide support for the attestations of the Chief Executive Ofcer and the executive ofcers responsible for the preparation of the companys nancial statements, required under Italian Law 262/2005 since 2007
2009
Assignment of responsibility for sustainability issues to the Nominating and Corporate Governance Committee, which thus became the Nominating, Corporate Governance and Sustainability Committee Revision of the Code of Conduct to incorporate additional principles of sustainability Formulation of Group Guidelines on the Environment, Health and Safety, Business Ethics and Anti-Corruption, Sustainability for Suppliers, Human Capital Management, Human Rights and Investments in Local Communities Update of the Enterprise Risk Management model to include additional risk factors related to climate change
2010
Formulation of Group Guidelines on Conicts of Interest, Data Privacy, ICT Assets and of the Green Logistics Principles Dissemination of Fiat S.p.A. Code of Conduct updated to include references to all Group guidelines Approval of Procedures for Transactions with Related Parties Review of the internal Business Ethics Audit system to include additional sustainabilityrelated elements in line with the Code of Conduct
Economic dimension
Update of the Enterprise Risk Management model and revision of risk map
2008
Creation of the Sustainability Unit and publication of the rst Sustainability Plan
2011
Formation of a new Group Executive Council(1) following acquisition of majority ownership of Chrysler Group, consistent with the objective of enhancing operational integration between Fiat(2) and Chrysler Group. The GEC, headed by Fiat S.p.A.s CEO, consists of members from both organizations and is the highest executive decision-making body, supporting the CEO in operational decisions Integration of all Fiat standard audits with ethical issue assessments regarding human rights, business ethics, conict of interest, corruption, and discrimination issues Fiat Compliance Program pursuant to Italian Legislative Decree 231/2001 updated to include the sensitive processes for the prevention of environmental crimes Publication and distribution of updated Chrysler Group Standards of Conduct, including references to environmental stewardship, health and safety Publication of Chrysler Groups rst Sustainability Report
(1)
In September 2011, Fiat S.p.A. formed a management committee, known as the Group Executive Council, or GEC, to oversee and enhance the operational integration of all Fiat afliates, including Chrysler Group. Nevertheless, the two companies remain distinct legal entities with separate governance. The GEC cannot contractually bind Chrysler Group, and recommendations made by the GEC to Chrysler Group, including transactions with Fiat companies, are subject to Chrysler Groups governance procedures. (2) Refers to Fiat Group excluding Chrysler Group.
62
Economic dimension
Corporate governance
Code of Conduct
The Fiat S.p.A. Code of Conduct represents a set of values recognized, adhered to and promoted by the Group, which believes that conduct based on the principles of transparency, integrity and fairness is an important driver of social and economic development. The Code of Conduct is a pillar of the governance system which regulates the decision-making processes and operating approach of the Group and its employees in the interest of stakeholders. The latest version of the Fiat S.p.A. Code of Conduct, which took effect in February 2010, is a revision of the 2003 version that replaced the Code of Ethics published in 1993. The Code of Conduct expands on aspects of conduct related to the economic, social and environmental dimensions, underscoring the importance of dialogue with stakeholders. Explicit reference is made to the United Nations Universal Declaration of Human Rights, the principal Conventions of the International Labour Organization (ILO), the OECD Guidelines for Multinational Enterprises and the US Foreign Corrupt Practices Act (FCPA). Specific guidelines, which are an integral part of the Code of
Conduct, were created concerning the following aspects: Environment, Health and Safety, Business Ethics and AntiCorruption, Sustainability for Suppliers, Human Capital Management, Human Rights, Conflict of Interest, Community Investment, Data Privacy and ICT Assets. Employees are informed of the content of the Code in the manner most appropriate to local practices. The document, available in Italian and eight other languages (English, French, German, Spanish, Polish, Dutch, Portuguese and Chinese), may be consulted and downloaded from the Groups internet and intranet sites. Copies can also be obtained from Human Resources, the Legal department or the Compliance Officer. The Code applies to the members of the Fiat S.p.A. Board of Directors, to all employees of Group companies and to all other individuals or companies that act in the name and on behalf of one or more Group companies. The Group disseminates the principles established in the Code of Conduct and the values of good governance to all employees (including security personnel), whatever their level or role, through periodic training and other information channels (see also pages 153-154). Fiat S.p.A. promotes the adoption of the Code as a best
63
practice standard for the business conduct of partners, suppliers, consultants, dealers and others with whom it has a long-term relationship. In fact, Group contracts worldwide include specific clauses relating to the recognition of and adherence to the principles underlying the Code of Conduct and related guidelines, as well as compliance with local regulations, particularly those related to corruption, money laundering, terrorism and other crimes constituting liability for legal persons. In 2003, Fiat S.p.A. adopted a Compliance Program in Italy (pursuant to Italian Legislative Decree 231/2001), which incorporates Article 2 of the OECD Convention of 1997 on bribery of foreign officials in international business transactions and is constantly updated to reflect legislative changes. Potential bribery and corruption are monitored continuously by the Compliance Program Supervisory Bodies (pursuant to Italian Legislative Decree 231/2001) at Group companies in Italy and, more generally, by sector Compliance Officers for Group companies worldwide. In 2011, Italy formally implemented EU Directives 2008/99/ EC and 2009/123/EC, which determine criminal liability for companies in the event of harm to the environment. Moreover, environmental crimes became part of Italian Legislative Decree 231/2001. The Fiat S.p.A. Audit & Compliance department performed a risk assessment of the sensitive processes possibly affecting the environment. As a result, the Compliance Program pursuant to Italian Legislative Decree 231/2001 has been updated to include these processes. Finally, when starting up, operating or closing a business activity, it is standard practice for the Group to evaluate the economic, social and environmental impacts through the relevant corporate functions and established procedures. Chrysler Group has an Integrity Code available in several languages and Standards of Conduct that are applicable to all employees. Together with the Chrysler Corporate Policies and Procedures, these documents represent the companys firm commitment to high business and ethical standards and contribute to creating a corporate culture that is characterized by integrity, transparency and accountability. The Integrity Code details rules of conduct for employees, including dealing with third parties such as suppliers, customers, government officials and business partners,
Economic dimension
64
Economic dimension
Corporate governance
as well as conflict of interest and internal control issues. The Corporate Policies are a collection of approximately 50 company statements that support the Integrity Code and cover topics such as Discrimination and Harassment Prevention; Workplace Violence Prevention; Employee Health and Safety; and Environmental Protection; among others. The Standards of Conduct describe actions or behavior which violate Chrysler Groups standards and which may result in disciplinary actions. The Integrity Code, Corporate Policies and Standards
of Conduct can be found on the online employee portal. Each year all salaried Chrysler Group employees complete the Ethics and Integrity Code web-based awareness training and acknowledge they have read and understood the Code, and that they know whom to contact for questions or concerns. Completion of the training is documented and reported to senior leadership team members. This training includes instruction on the Foreign Corrupt Practices Act and, where pertinent, management is required to participate in training focused on this legislation.
Fighting corruption
Fiat Group actively participates in the fight against all forms of corruption, fully complying with national and international laws and the principles of fairness, transparency and integrity. To ensure the highest standards are met, these principles have also been included in detail in the relevant guidelines (Business Ethics and Anti-Corruption Guidelines and Conflict of Interest Guidelines) and, together with the requirements of local law, they are to be adhered to by all employees, agents, suppliers and other individuals and entities that have a business relationship with the Group. The Fiat S.p.A. guidelines specifically address: the prohibition of cash gifts to public officials, politicians or military personnel aimed at obtaining economic advantages for Group companies the need to include clauses in outsourcing and joint venture agreements that specify the consequences of violating anti-corruption laws the prohibition of gifts and benefits-in-kind for the purpose of gaining preferential treatment the possibility of donations for charitable purposes only and the requirement that contributions to political parties must be approved by top management full compliance with laws applicable to the export of goods and services Compliance with business ethics standards, including in relation to corruption, is checked through regular audits, based on the annual risk assessment, conducted by the Fiat S.p.A. Audit & Compliance department. Over a five-year period the audit cycle will cover all consolidated Group entities (excluding Chrysler Group). All Chrysler Group functional areas are subject to analysis on an ongoing basis to detect risks related to corruption both through audits of the area itself and the management process governing each area. In addition, the Legal Compliance Questionnaire (LCQ) is distributed annually to the operating areas as required by Chrysler Groups Legal Compliance and Ethics Program, managed by the Office of the General Counsel (OGC). It contains 39 general questions and up to 150 area-specific questions to ensure full awareness and compliance with Chrysler Groups anti-corruption policies and procedures. In the event an issue is identified, the OGC will work with the Business Practices Office to investigate and resolve the issue. In order to avoid conflicts of interest, the companys Operating Agreement provides that Chrysler Group cannot enter into any new agreement with company members or any of their affiliates that involves aggregate payments in excess of $25 million without board approval. Additionally, Chrysler Group has a written Conflict of Interest policy prohibiting officers, employees and their family members from personally participating in transactions that conflict with business interests or that might influence employees business judgment. The Chrysler Group Business Practices Office interprets the policy, issues advisories, oversees investigations and reports non-compliance to the Chrysler Group Board of Directors Audit Committee.
65
Chrysler Group) and expanded all operational audits to include assessment of ethical issues with particular reference to human rights, business ethics, conflict of interest, corruption and discrimination issues. During 2011, 169 cases of actual violations of the Fiat S.p.A. Code were reported. As a consequence of Code violations, 169 employees were subject to disciplinary actions, while five reports received through the Whistleblowing Procedure led to the introduction of improvements to the Internal Control System.
2011 Actual violations revealed during periodic activities carried out by Fiat S.p.A. Audit & Compliance and the Compliance Ofcers for each Group sector and checks forming part of standard operating procedures Alleged violations received under Whistleblowing Procedures of which veried as actual violations Total actual violations 167 36 2 169
For all Code violations, the disciplinary measures taken were commensurate with the seriousness of the case and complied with local legislation. The relevant corporate departments were notified of the violations, irrespective of whether criminal charges were made by the authorities. The principal types of violation verified in 2011 included inappropriate conduct by employees such as absenteeism, falsification of medical documents, violent and disorderly conduct, inadequate behavior and use of drugs or alcohol. No cases were revealed involving discrimination or corruption in any form. In addition, in order to understand the level of adherence by suppliers to the sustainability standards required by the Group, as of 2008 Fiat Group Purchasing initiated a monitoring process based on two principal elements: supplier selfassessment questionnaires and field audits conducted by Group personnel or external organizations.
To the Groups knowledge, there is no use of child or forced labor at the plants of its suppliers (see also page 212). Under the Fiat S.p.A. Code of Conduct, Fiat Group does not employ any form of forced, mandatory or child labour, namely it does not employ people younger than the permissible age for working established in the legislation of the place in which the work is carried out and, in any case, younger than 15, unless an exception is expressly provided by international conventions and by local legislation. According to a 2011 study conducted across 33 countries, no Fiat Group plant makes use of child labor or mandatory labor. Conducted every two years, the 2011 study covered 99% of the total workforce and showed that no company exposes minors to hazardous work or employs individuals under the minimum working age set by local legislation, apprentices under the statutory minimum age, or minors under 15 years of age in countries where the minimum age is lower.
(1) (2)
Chrysler Group not included in scope. Data restated to exclude companies demerged into Fiat Industrial S.p.A.
Economic dimension
66
Economic dimension
Corporate governance
level within each Group company. The integrity of lobbying practices and other ethical issues within the Group (excluding Chrysler Group that has a different monitoring system) is monitored through audits performed by the Fiat S.p.A. Audit & Compliance department. Standard audits seek to verify compliance with the Code of Conduct, including aspects and resources that could possibly be linked to lobbying activities. The results of these activities are reported to the Compliance Officer, Chief Executive Officer and Board of Directors. Registered in the previous EU Commission Transparency Register since its establishment in 2008, Fiat S.p.A. conrmed its registration in 2011 in the new EU Commission and European Parliament Joint Transparency Register for organizations and self-employed individuals engaged in EU policy-making and policy implementation. The purpose of the register is to ensure that lobbying practices are transparent and legally compliant as well as consistent with ethical principles, so as to prevent undue pressure and illegitimate or privileged access to information or to decision makers.
67
Dialogue with associations focuses on issues of an economic nature, such as those related to growth, development and company performance; environmental issues linked to sustainable mobility; labor policies (exibility, training, pension systems); and specic needs associated with Fiat Group products, manufacturing and commercial activities (technical, trade and tax regulation). In particular, consistent with the Fiat S.p.A. Code of Conduct and Chrysler Group Integrity Code, the Group aims to contribute positively to the future development of regulations and standards in the automotive industry and in all other sectors related to the mobility of people and goods. In Europe, the Group belongs to trade associations such as the European Automobile Manufacturers Association (ACEA) for passenger cars and commercial vehicles, as well as working groups such as the European Round Table (ERT) for industrial leaders. Through ACEA, which interfaces on a regular basis with the major European institutions, Fiat S.p.A. has contributed to the definition of regulations and directives on CO2 emissions, technical car standards and international transport and trade policies, in an effort to ensure that regulations are balanced and
sustainable for automakers and EU member states. In North America, the Group works with several industry organizations. As a founding member, Chrysler Group has a long history of working with the Automotive Industry Action Group (AIAG) and supporting critical projects. This cooperative forum for the auto industry is focused on improving business processes and practices involving trading partners and peers throughout the supply chain. Projects in corporate responsibility, supply chain management and quality allow both Chrysler Group and the industry to improve the quality and efciency of daily work. The Alliance of Automobile Manufacturers is the leading advocacy group for the US auto industry. The Alliance focuses on developing and implementing constructive solutions to public policy challenges that promote sustainable mobility and benet society in the areas of environment, energy and motor vehicle safety. The organization provides Chrysler Group and the auto industry with a united voice on US federal and state regulatory and legislative matters. In Brazil, Fiat has long been an active member of the Associao Nacional dos Fabricantes de Veculos Automotores (ANFAVEA). This nationwide association
Economic dimension
68
Economic dimension
Corporate governance
brings together the countrys automakers with the purpose of addressing industry and market issues affecting the automotive sector and coordinating and protecting the collective interests of the associations members. Automotive associations, however, are not the only organizations with which the Group collaborates. Fiat Group also has strong relationships with public entities, universities and other organizations through which it contributes to experimental activities or laboratory testing aimed at dening the content of specic legislation or regulations for promoting sustainable mobility (see also pages 82-83). Lobbying activities on social issues in some countries, such as the US, are managed separately by Group companies which deal directly with institutions, government and trade unions. Chrysler Group has robust processes to ensure that the company conducts lobbying activities with respect to governmental authorities in the US in accordance with laws and applicable government ethics and disclosure rules.
In other countries, such dealings are carried out through the industrial and employers associations to which Group companies belong, such as the Bundesvereinigung der Deutschen Arbeitgeberverbnde (BDA) in Germany and the Mouvement des Entreprises de France (MEDEF) in France. These associations act to protect the interests of their members and represent them in social dialogue, both at the national and local levels, with the key political and administrative institutions, trade unions and other social parties. In Italy, Fiat S.p.A. has decided to withdraw its membership from Conndustria as of 2012 and negotiate its own labor contract. Through agreements forged directly with its social partners, Fiat Group will compete internationally on a more level footing with its competitors at a time of such particular difculty for the world economy. In addition, Business Europe the confederation of European businesses which, through its 41 member federations from 35 countries, represents more than 20 million companies of
69
all sizes is a recognized partner that participates in social dialogue at the European Union level. Finally, any relationship between Fiat Group and political parties and their representatives or candidates is conducted according to the highest standards of transparency and integrity. Financial contributions by the Group are only allowed where permitted by law and must be authorized at the appropriate level within each Group company. In 2011, no contributions were made by Fiat Group to political parties. Fiat Group does not have a Political Action Committee (PAC), but employees are free to make personal contributions to political candidates or parties, to the extent that these contributions do not violate corporate policy. Any political association or nancial contribution made by Group employees is considered personal and completely voluntary.
Public funding
Fiat Group worldwide ( million)
Brazil
Serbia
30.6%
25.7%
Other countries
7.8%
Mexico Italy
12.7%
23.2%
Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. European Investment Bank.
Economic dimension
70
Economic dimension
Corporate governance
Risk Management
Enterprise Risk Management model
Fiat Group defines a risk as any event that could negatively or positively impact its ability to achieve its objectives. In 2004, the Group developed an internal Enterprise Risk Management (ERM) model in order to identify and assess the significance of risks in a timely manner, subsequently mitigate those risks, and insure them where possible or eliminate them where necessary. Adapted from the framework established by The Committee of Sponsoring Organizations of the Treadway Commission (COSO) to the specific needs of the Group, in 2010 that model was revised to reflect the experience acquired over the years and indications of best practice that emerged from a comparison with other industrial groups. In particular, risk drivers were remapped into new, refined, or reformulated groups to better respond to new requirements or emphasize significant issues (climate change, macro-economic developments, joint ventures, etc.). Some 50 risk drivers have been identified, which are further broken down into approximately 85 potential events. This update was managed and coordinated by group
central functions and, applying a top-down approach, was extended to all operating sectors and companies. In 2012, ERM risk drivers will be integrated with water-related risks (quantity and quality of water withdrawal, regulatory changes and conflicts with stakeholders). The classification of likelihood of occurrence and the potential impact on profitability, business continuity and reputation (or a combination of these elements) which, analyzed jointly, determine the significance of the risk remained unchanged. For events that exceed a predetermined significance threshold, existing measures are analyzed and future containment measures, action plans and individuals responsible determined. This process, which is aided by a dedicated information system, is based on a bottom-up approach that, beginning with individual business units, enables generation of a summary report for each sector, including any containment measures to be implemented. Sector CEOs and CFOs are required to approve these reports, while the Group Controller is responsible for their coordination and consolidation into the Group Risk Report. This document is submitted annually to the Internal Control Committee, which assists the Board of Directors in verifying the adequacy
71
and effective functioning of the Internal Control System. Chrysler Group, consolidated for accounting purposes in Fiat S.p.A., will be integrated in the ERM methodology in 2012. The 2011 assessment revealed various types of risk related to climate change, which include risks concerning regulations, consumer preferences for eco-sustainable products, reputational impact on the community where the Group operates and increase in energy costs. As in the past, the Group has demonstrated continuous appropriate management of these risks through the most effective tools, gearing research and investments towards products with an ever decreasing environmental impact, promoting lowemission vehicles, improving sales force skills to convey the benefits of the ecological features of the Groups vehicles to customers, adopting efficiency projects for reducing plant energy consumption and using renewable energy sources. Certain specific risks(1) are monitored by the appropriate organizational entities. For example, risks associated with the potential impact of the Groups industrial activities on the environment and climate are monitored and proactively managed by the Environment, Health and Safety (EHS) unit for each sector in accordance with the Environment pillar of World Class Manufacturing. Plant managers are responsible for the operational aspects, and their activity is coordinated centrally by the Group EHS structures (see also page 115). In addition, Risk Management S.p.A., the Fiat Group company responsible for control of pure risks (e.g., fires, explosions, natural disasters) and insurance coverage for those risks, plays a central role in the management of events that could potentially impact the continuity of operations or the integrity of physical assets (in particular, the Groups plants).
Economic dimension
72
Economic dimension
Corporate governance
On the basis of Risk Management analysis, strategies and actions for the prevention, elimination, mitigation or transfer of those risks are designed and implemented in collaboration with sector risk managers. All activities designed by Risk Management to manage pure risks, and implemented in 2011, are detailed in a public document whose objective is to communicate to stakeholders the Fiat approach and methods. Results achieved show that prevention is the foundation of risk management. The risk management process, methods and tools are designed to minimize the likelihood of occurrence and the potential impact of risks. Field audits are performed with the support of an external risk consulting agency that is a member of a leading insurance group. Subsequently, risk profiles are created in order to identify the appropriate measures for prevention or mitigation based on international standards and best practice. The audits of Fiat Group sites (excluding Chrysler Group) are based on a three-year cycle, together covering approximately 92%(1) of the insured value.(2) In 2011, 57
sites were audited covering approximately 53% of activities within the scope of analysis. The objective is to analyze substantially all sites within the scope of analysis (more than 98%) at least once each cycle and all principal sites (over 50%), based on specific risk sensitivity, at least annually. At Chrysler Group, audits are conducted at all main sites each year. In 2011, 41 locations were audited, representing 91% of insured value of all Chrysler Group sites. Prevention and mitigation measures put in place at Fiat Group sites (excluding Chrysler Group) in 2011 resulted in targeted investment of around 17.3 million that enabled a reduction of approximately 2.3 billion (3) in the potential value of losses expected, with a global efficiency index in excess of 100/1.(4) Further evidence of the efficiency of Fiats methodology is the percentage of sites that attained Highly Protected Risk (HPR) certication from the international insurance market. In terms of insured value, these sites account for approximately 67% of activities (not including Chrysler Group). In 2011, the Risk Management Lab continued its research activities to develop innovative prevention methodologies to guarantee the ability to identify, analyze and manage pure risks. Many activities and initiatives were undertaken during the year. VISIO@RISK software was extended to include hurricanes and hailstorms and was rolled out to all Group plants (excluding Chrysler Group), enabling real-time sharing of individual risk profiles. In addition, a dedicated climate change brainstorming workshop was held with representatives of the main Group functions to identify, analyze and evaluate new potential risks and mitigation actions associated with climate change. As a consequence, dedicated guidelines related to climate change have been issued and distributed throughout the Group in order to raise awareness and promote implementation of the most appropriate actions. Also, a new methodology was developed to identify sites that are potentially vulnerable to earthquakes. This new methodology and the related instruments have been tested with a pilot program at 22 Italian sites. Moreover, a new methodology was developed to identify, analyze and quantify insurable environmental risks with a pilot project conducted at three Italian sites.
(1)
Scope of analysis. Calculation based on replacement value of property insured and cost associated with interruption of activity. Figures relate to the period from 1 September 2010 to 31 August 2011 (Insurance Year). (4) Efciency index for mitigation measures (KPI = reduction of expected damage/cost of protection) indicated as best practice for industrial risk management.
(2) (3)
73
The global climate has been evolving due to natural causes over thousands of years, but at such a slight and gradual rate that the human race and society have been able to adequately adapt. Although the industrial era began more than a hundred years ago, the effects of the use of fossil fuels on the accumulation of greenhouse gases in the atmosphere have just begun to manifest themselves in roughly the past 30 years. It is estimated that by around the year 2100 the earths average temperature could increase by approximately 3-5 degrees Celsius. For the near future, climate change is expected to induce more frequent and powerful extreme weather phenomena such as heat waves, rain downpours, floods, tornadoes, hurricanes, hail, strong winds, droughts and fires. All of these events may increase the risk of damage to facilities, such as plants or other company sites. In the long run, it will become necessary to take into account rising sea levels as well, which may affect coastal areas and cause human migration due to changing climatic and agricultural conditions that will put pressure on society and the global economy. For this reason, it is essential to have reliable climate simulation models to create adaptation strategies in order to be prepared. It is therefore becoming more and more important to train and inform engineers on the effects of climate change, regardless of how improbable it now seems, so that industrial facilities will be properly designed for an altered global scenario.
(1) The influence of risk factor on sustainable development Gritzo, Doerr, Bill, Ali, Nong, Krasner 2009; Environmental impact of automatic fire sprinkler Wieczorek, Ditch, Bill 2010.
Economic dimension
74
Economic dimension
Sustainability governance
Sustainability governance
A company is judged not only by nancial results but also by how this success is achieved. The long-term health of an organization is highly correlated to its ability to respond to the needs and expectations of all stakeholders. Sustainable growth is, in fact, built on responsibility. Trust in the Group is generated through its respect for the environment and future generations, the satisfaction of customers and shareholders, the sense of belonging among collaborators, protable relationships with partners, and mutually benecial interaction with local communities.
Sustainability-focused entities
Even if a companys primary commitment is to be financially sound and ensure economic viability to all stakeholders, at Fiat Group, integration of economic decisions with those of a social and environmental nature constitutes a commitment that is fundamental to the creation of longterm value. This awareness is rooted in the Groups history and corporate culture and has evolved and strengthened over the years, becoming an integral part of the strategic
approach that guides the business. Fiats approach to business is, in fact, shaped by a culture of acting responsibly and the conviction that industrial development only has value if it is also sustainable. Chrysler Group, part of Fiat Group since June 2011, is equally committed to the principles of sustainability and has a formal organizational structure and processes dedicated to promoting sustainable development and values. Consistent with the operational integration of Chrysler Group, Chryslers sustainability activities and commitments for the future are
75
aligned with those of Fiat Group. Sustainability management involves several entities within the organization. The Sustainability Unit (SU), plays a key role in promoting a culture of sustainability within the Group, facilitates the process of continuous improvement, and contributes to risk management, cost optimization and enhancement of the company reputation with stakeholders. The Sustainability Unit interacts with the individuals responsible for operational management of key issues (e.g., environment, energy, innovation, human resources, etc.) within each sector and central function, supporting them in identifying principal areas for action. The SU also manages relationships with sustainability rating agencies, analysts and international organizations. The Cross-Functional Sustainability Committee (CSC), consisting of representatives of the principal functions at the central and sector level (Business Development, Corporate Communications, Engineering & Design, Finance, GEC Coordinator, Human Resources, Industrial Relations, Institutional Relations, Internal Audit, Manufacturing, Purchasing, Senior Counsel, Treasurer) promotes and evaluates operational decisions and plays an advisory role
for proposals submitted to the Group Executive Council (GEC) by the SU. The Group Executive Council (GEC), the decision-making body headed by Fiat S.p.A.s CEO and composed of the CEOs of the operating sectors, the heads of each of the Groups operating regions and various functional heads, defines the strategic approach, approves the guidelines and evaluates the alignment of the Sustainability Plan with business objectives. The GEC is periodically updated on the status of projects and the Groups overall performance on sustainability issues. The Nominating, Corporate Governance and Sustainability Committee (a sub-committee of the Board of Directors) evaluates proposals related to strategic guidelines on sustainability-related issues, presenting opinions to the Board of Directors as necessary, and reviews the annual Sustainability Report.
Economic dimension
76
Economic dimension
Sustainability governance
The CDLI only includes those companies in the FTSE Global Equity Index Series (Global 500) that demonstrate the greatest transparency in disclosure to stakeholders of the strategies and actions taken to combat climate change. The CPLI, on the other hand, includes companies that have demonstrated the greatest commitment in reducing carbon emissions.
For the third consecutive year, Fiat S.p.A. has been conrmed in the Dow Jones Sustainability World and Dow Jones Sustainability Europe indexes. The prestigious DJSI World and DJSI Europe equity indexes only admit those companies judged best-in-class in the sustainable management of their businesses, from an economic as well as social and environmental perspective. Fiat received the highest score (94/100), together with BMW, compared with an average of 72/100 for companies in the Automobiles sector evaluated by SAM, the investment group specialized in sustainability investing. More specically, Fiat S.p.A. obtained the maximum score in almost every area analyzed in the environmental dimension (combating climate change, product performance, logistics processes) and, in the social dimension, for human capital development, stakeholder engagement, responsible supplychain management, and initiatives for local communities. The maximum recognition was also given for risk management and the innovation process.
Following the research conducted by Vigeo, a European leader assessing companies with regard to social, environmental and governance issues, in December 2011 Fiat S.p.A. became one of an elite group of companies included in the Advanced Sustainability Performance Eurozone Index (ASPI Eurozone). The ASPI Eurozone is recognized as one of the leading sustainability indexes and is used by the growing community of Socially Responsible Investors to dene sustainable investment universes, to benchmark their investment performance or to create index-linked products.
Fiat S.p.A. has also entered the Global 500 Carbon Disclosure Leadership Index (CDLI) and Carbon Performance Leadership Index (CPLI) according to the report published by the Carbon Disclosure Project (CDP). Fiat received a score of 93/100 for transparency in disclosure and the maximum score (A) for the commitment shown in reducing carbon emissions. Both scores represented a major improvement over the previous year and conrm the central role of reducing environmental impacts in Fiats overall business strategy. More than 400 companies worldwide were analyzed and Fiat was the only Italian company among the 23 companies admitted to both indexes.
Fiat S.p.A. is also a member of other important sustainability indexes, including STOXX Global ESG Leaders, STOXX Global ESG Environmental Leaders, STOXX Global ESG Social Leaders, STOXX Global ESG Governance Leaders, ECPI Ethical Euro, ECPI Ethical EMU, FTSE ECPI Italia SRI Benchmark, FTSE ECPI Italia SRI Leaders, Ethibel Excellence Europe and Ethibel Excellence Euro.
lundquis. t
2011
Fiat Group took second place in the CSR Online Awards 2011 Italy (established by the strategic communications consultancy, Lundquist) for online communication in the area of corporate social responsibility.
77
May 2010(4)
December 2010
June 2011
November 2011
(1) The Vigeo analysis covers the largest global asset owners, mainly pension funds (national, occupational, company-specic, local governments), but also foundations and other institutional owners. Among them, an asset owner is identied as a SRI if at least one of these conditions is met: it adopts SRI principles in its investment policy (voting, engagement, activism, screening), it has dedicated SRI mandates, it uses SRI benchmark. The analysis also covers green, social and ethical mutual funds operating worldwide. A fund has to meet all the following conditions in order to be eligible for the analysis: it uses ethical, social or environmental screening for stock and bond issuers selection (negative screens and/or best-in-class), it is marketed as SRI and it is available to the public (retail funds). (2) Large nancial organizations investing their own assets, pension funds, foundations, public funds and insurances, endowments or sovereign funds. They do not include assets managed by management rms on behalf of their clients. (3) The term is used in the same sense as for the European Fund and Asset Management Association (EFAMA) Statistical Releases: publicly offered open-end funds investing in transferable securities and money market funds. However, the data is not completely comparable, as this report includes some life insurances and pension funds complying with Vigeo denitions (See Green, Social and Ethical Funds in Europe 2011 Review). (4) Refers to Fiat S.p.A. pre-demerger.
Economic dimension
Sustainable innovation
Economic dimension
79
Sustainable innovation
The transport of people and goods is a fundamental driver for economic growth and development throughout the world. Fiat Group has long been committed to providing an increasing number of people with sustainable and economically accessible mobility solutions. Through research and continuous innovation, the Group strives to develop products that satisfy the demands of mobility while still respecting environmental and social needs.
To support new product development, Fiat Group places a great emphasis on research and innovation. As of 31 December 2011, the Group had 77 Research and Development centers and about 17,000 people, all working to make mobility increasingly sustainable by developing innovative products and services designed to anticipate market needs. To facilitate achievement of this objective, worldwide innovation and product development activities are coordinated at a central level by the Chief Technology Officer (CTO). The CTO is a member of the Group Executive Council and leads Fiat Groups Research & Development department, fostering opportunities for synergies and technology transfer within the Group. To this end, he also chairs regular Innovation Committees, composed of the heads of Innovation and Engineering from each Group regional area.
Economic dimension
80
Economic dimension
Sustainable innovation
principle, innovations are thoroughly tested before being introduced in the market to verify their safety for the environment and society as a whole.
Public funding for research and development
Fiat Group worldwide ( million)
2010 (2) 32 11 11 -
Open innovation
Fiat Groups innovation process is based on the generation and exchange of ideas that are stimulated continuously through a variety of initiatives and tools. Its goal is to involve the various levels of the company in the process and to promote collaboration and opportunities for exchange with external parties. Key challenge areas for Group research include lowenvironmental impact transport, vehicle safety, information and communication technologies, materials and efficient manufacturing processes.
In 2011, Fiat Group spent approximately 2.2 billion on research and development. Despite the continuing global economic crisis, investment continued and a number of major innovation projects were completed during the year. The Groups research is concentrated in the following principal areas: environment with a focus on reducing environmental impacts throughout the entire vehicle life cycle, from the raw materials used to vehicle scrapping (by means of reduced CO2, other emissions and noise levels, improved energy efficiency and use of new materials) society with a focus on all aspects of safety (active, passive and preventive), on measures for promoting mobility for all people and on the development of efficient infomobility systems competitiveness with a focus on vehicle architectures, performance, comfort and perceived quality, and on the use of innovative technology in production processes The Group carefully assesses in advance the impact of its research activities on the environment and on the health of the users of its products. In accordance with a precautionary
(1) (2) (3)
Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. European Investment Bank.
81
These may include new and innovative features, improvements to business processes, new venture ideas and vehicle opportunities, among others. Regular reviews are conducted to sort, categorize and process the ideas to the appropriate organization within the company. In 2011, over 180 ideas were submitted from all levels and areas. Another innovation stimulator is Chrysler Groups Innovation Space, completed in November 2011. This space, equipped with tools and materials for idea development, provides an incubation area for employees to bring in any new feature or innovation. The process is coordinated by the Innovation Space Facilitator, who is the coach to help employees nurture their ideas into reality. In addition to proposals submitted by employees, research and development personnel are engaged in a formal process involving tools and procedures for sharing ideas and for the approval of innovative projects by innovation and product development departments. The CRF, for example, adopted a Strategic Research Agenda (SRA) in 2011. The SRA provides steering guidelines for worldwide research activities developed to meet the innovation needs of Fiat Group Automobiles (FGA). It also takes into consideration the technology roadmaps and priorities identified by European and
national technology platforms in which industry, institutions and universities participate. The same objective was pursued in 2011 with a special FGA Innovation Committee. Formed by the various corporate engineering and product departments, the committees focus is on the discussion of technical and innovative solutions intended to steer them towards models for future development.
Distributed creativity
Creativity is also stimulated through a variety of external channels, such as customer interaction and open innovation networks. Along with other methods, Chrysler Group guides and supports open innovation through participation and leadership on the Autoharvest Innovation Advisory Council. Autoharvest is an industry-inspired open innovation collective and online space that spurs advancement through collaboration, partnership and knowledge sharing among academic, automotive and other associated technical markets. Chrysler Group plays a key role in shaping this initiative into a leveraged asset for sustained growth and innovation. Chrysler Group currently leads several engineering challenges through the Autoharvest Network in areas of waste
Economic dimension
82
Economic dimension
Sustainable innovation
heat recovery, human comfort and controllable window tinting. Customers are also involved in an ongoing way in the process for generating ideas. Here the objective is to understand emerging expectations, constantly improve products on the market and, in general, draw out new ideas to steer future product development. To this end, a variety of communication channels are in place between the company and customers, such as the Giulietta Top Care program run by Fiat Group Automobiles. Designed for the launch of the Alfa Romeo Giulietta, the project involved about 2,000 customers in Austria, Germany, Switzerland and the UK and ran from January 2011 to January 2012. Customers participating in the initiative were contacted at three different stages over the first year of vehicle use to
collect their comments and assessments. The feedback is being studied jointly by the Customer Care, Quality and Product departments in order to identify potential improvements, measure the effectiveness of on-board instruments and take a proactive approach to managing any customer complaints received. The goal is to enhance the current model and steer new product development.
Suppliers
Supplier innovation is encouraged through various initiatives such as: Technology Days, where leading suppliers share some of the latest technological developments in innovation, technology and quality Fiat Supplier Performance program, aimed at encouraging a proactive approach from suppliers, by sharing economic benefits generated through the introduction of innovative methods and technologies that they propose Chrysler Group Supplier Innovation Gateway, which offers a streamlined process to review, investigate and approve supplier innovations (see also pages 215-216)
83
technical culture and training among young engineers. The goal of the organization is to provide undergraduates in engineering with hands-on project experience, while also developing innovative solutions from research on alternative propulsion systems. Chrysler Group utilizes several collaboration approaches to advance its objectives of innovation in mobility. Twenty-nine projects funded by Chrysler Group involve the participation of universities, consortia and research centers. Chrysler Groups collaboration with university co-op education programs is designed to capture and encourage fresh insight and unbridled enthusiasm about the real-life technical challenges of tomorrow from the participating students. Students gain real-world experience through internship projects embedded within the engineering organization as Chrysler Group develops the professional talent of the future. One example of this collaboration is the unique partnership of Chrysler Groups Automotive Research and Development Centre with the University of Windsor in Canada which continues to play an important role in establishing and developing student-industry relationships. Similarly, the Fiat Group Automobiles (FGA) relationship with the Politecnico di Torino is further evidence of how the Group partners with universities. FGA promotes undergraduate education in automotive engineering by directly sponsoring courses as well as proposing research and thesis topics. In 2011, a new agreement was reached which places even greater emphasis on new methodologies, technologies and processes of interest to the Group
within the curriculum coursework, and also encourages a broader range of master-level courses. Additionally, with Chrysler Groups support, in order to internationalize the degree programs, a cooperative project has been launched between the Politecnico di Torino and the University of Windsor. Through this partnership, during the academic year 20112012, ten students will take courses at both universities and receive a joint masters degree valid in both Italy and Canada. The selected students will also have the opportunity to complete an internship at the Research and Development centers of Fiat and Chrysler Group, under the supervision of a company mentor. Magneti Marelli also collaborates actively with the academic world, through initiatives such as the Joint Research Area University Marelli (J-RAUM) program. This program supports projects that are managed jointly with universities for the training of new technicians and promotes the sharing of scientific knowledge between academic institutions and industry. The idea is based on the concept of a shared space dedicated to the promotion and management of innovation projects. In 2011, Magneti Marellis Automotive Lighting division, in close partnership with the Centro Ricerche Plast-Optica (CRP) and the University of Trieste and Udine, opened the new J-RAUM laboratory in Tolmezzo, Italy. As a research and innovation hub for the automotive industry, the new center adds to those already operating in Bologna and Venaria Reale, Italy. Ferrari has continued its work with leading science and research institutions, particularly with respect to its collaboration with the Faculty of Engineering of the University of Modena (Italy), with which it has developed the MilleChili Laboratory. With the support of lecturers and Ferrari engineers, undergraduates conduct vehicle weight reduction research in the laboratory, which is equipped with vehicle chassis and simulation software for testing. In 2011, a second lab called Laboratoriorosso was established for new engine research. Other partnerships pursued by Ferrari with the international academic community include projects with the Massachusetts Institute of Technology, RWTH Aachen University and Munichs Technische Universitt, for sharing and developing specialized knowledge of new construction materials and techniques.
Economic dimension
84
Economic dimension
Sustainable innovation
Institutions
In Europe, the Group has been playing an active role for a number of years in the European Commissions Framework Programmes, which set priorities for research and funding. As a result, individual Group sectors and the Centro Ricerche Fiat (CRF) have always been actively involved in the most important research projects and round table discussions. Since 1980, the CRF in particular has taken part as a coordinator or partner in pre-competitive research projects developed with other players from the worlds of industry, research, academia and government. During 2011, the CRF obtained approval for 19 European projects, bringing the total number approved since the commencement of the Seventh Framework Programme (2007-2013) to 133. The CRF continued to take part in a number of research projects promoted by the European Commission, involving other key public and private-sector players with the aim of steering research on topics of European-wide public interest towards applications in industry. One example is given by the European Technology Platforms: ERTRAC, for road
transport; EPoSS for smart systems integration; EuMaT for advanced engineering materials and technologies; and MANUFUTURE for production processes. Public-Private Partnerships (PPP), such as the Green Cars Initiative and Factories of the Future, are other examples. In 2011, the EMC2-Factory research project, coordinated by the CRF, was launched under the Factories of the Future PPP. It aims to improve manufacturing processes in terms of economic and environmental sustainability, by developing new process technologies, design and planning methods. Through the CRF, the Group is also an active member of leading research and development organizations at the European level, such as EUCAR, the European Council for Automotive R&D. This organization focuses on the areas of fuels and powertrain, integrated safety, telematics, transport of goods and people, materials and manufacturing, and ERTICO-ITS Europe, a network of European and international partners for the development and deployment of intelligent transport systems and services. In the specific field of road transport telematics, the CRF is involved in the iMobility Forums working groups.
85
In North America, Chrysler Group also collaborates on research projects with key institutions. In Canada, through the Automotive Research & Development Centre, Chrysler Group works with leading Canadian engineering institutions in areas of materials and virtual engineering and validation. Chrysler Group is also a member of the United States Council for Automotive Research (USCAR), the collaborative technology organization of Chrysler Group, Ford Motor Company and General Motors Company, aimed at strengthening the technology base of the US auto industry through cooperative research and development. Through participation in USCAR, Chrysler Group has access to nearly 600 projects with national laboratories, research centers, industry and universities in conjunction with USDRIVE, a consortium of the US Department of Energy and transportation, energy and utility companies. USCAR is also involved with seven projects with battery industry partners in collaboration with the United States Advanced Battery Consortium (USABC).
Emergency call
In the near future, the emergency call service (eCall) to 112, the common European emergency number, will become a European-wide standard. This will require all vehicles to be equipped with a wireless communication device for automatic emergency calling, allowing the position of all vehicles on the road network to be known in real time. The system will enable the integrated management of traffic and the provision of advanced mobility services. The Centro Ricerche Fiat and Magneti Marelli are actively involved in the European HeERO project, co-funded by the European Commission, whose objective is to carry out the start-up of an interoperable and harmonized 112-based invehicle emergency call system. Chrysler Group is also evaluating similar systems for its products and will introduce a range of new connectivity features in 2013.
Economic dimension
86
Economic dimension
Sustainable innovation
With a focus on cooperative safety, the Group is at the forefront of one of the main challenges for mobility today: extending the use of wireless communication technologies to enable Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) communication. The objective is to improve recognition of dangerous situations, reduce distraction and assist the driver in critical circumstances. The European Commission gives significant support to a number of major research projects for the development of the wireless communication technologies and architectures necessary to create a system of information exchange. Reflecting its recognized expertise in telematics, the Centro Ricerche Fiat (CRF) has long been a key contributor to European research in the field, participating in a great number of research projects. As part of the DRIVE C2X project, which aims to assess the benefits of cooperative systems in terms of traffic safety and efficiency, the CRF, in partnership with Autostrada del Brennero S.p.A. (operator of the A22 motorway in Italy), is developing a site on a section of the A22 to test a series of potential V2V and V2I communication applications with a fleet of prototype vehicles. The test results will lay the foundations for further, more extensive testing under the project, which will continue in the coming years. Magneti Marelli also participates in a variety of projects aimed at developing technological solutions for the creation of interoperable communication networks, i.e., networks enabling the reliable exchange of data between vehicles and with infrastructure. Magneti Marelli is an active partner in Viajeo, a leading project co-funded by the European Commission under the Seventh Framework Programme, and coordinated by ERTICO-ITS Europe. The objective of Viajeo is to design, demonstrate and test an open platform with interfaces to a wide range of data sources, in order to provide data processing and management to support a variety of infomobility services.
In 2011, Fiat S.p.A. acquired majority ownership of Chrysler Group. One of the expected benefits of the alliance lies in merging the respective capabilities, experiences and know-how of the organizations, each focusing on its core strengths. Chrysler Group is the center of competence for electric and hybrid vehicles for the entire company, while Fiat Group Automobiles (FGA) leads the design and development of highly fuel-efficient, low-emission powertrains.
87
In 2011, an agreement was reached between Chrysler Group and the Centro Ricerche Fiat (CRF) to evaluate and develop technologies for future vehicles. In addition, a Fiat Group Automobiles-Chrysler Group Innovation & Methodologies Synergies group was established within the CRF, tasked with coordinating research and innovation activities. Examples of joint innovation activities relate to the following areas: integrated use of personal devices in vehicles through embedded voice recognition for the Short Messaging System (SMS) and integration of smartphone screen and functionality on the radio screen development of preventive safety systems based on cameras and radar to recognize and react in the event of a potential collision security functions on key fobs to easily access the vehicle using the latest technology for short range communication (e.g., Near Field Communication technology) passive seat venting and adaptive seats for thermal and
postural comfort, with advanced conditioning system integrated with central heating, ventilation and air conditioning exhaust heat recovery to convert wasted heat into electrical energy
Economic dimension
88
Economic dimension
Sustainable innovation
Trento, Italy, for the establishment of biomethane production plants fed by various types of biomass. Turning finally to transmissions, research is being focused on cost-effective solutions for Dual Clutch Transmission architectures, introducing further enhanced functionalities to provide consumers with higher performance and comfort while meeting fuel economy and emissions targets. In the field of powertrain electrification, as the Group center of expertise for hybrid and electric engine technologies, Chrysler Group spearheads research into innovative solutions to overcome the technological hurdles and cost barriers which continue to make electric vehicles accessible only to a limited number of users. Technical experts from the CRF provide Chrysler Group with specific support on activities related to electrification systems and components, including functional safety, electric drives and battery system management.
89
In 2011, Chrysler Group deployed 105 Ram Plug-In Hybrid Electric Vehicle (PHEV) demonstration trucks to 15 partners across the United States. These vehicles will accumulate real-world mileage as part of Chrysler Groups 140 PHEV truck demonstration program funded by the US Department of Energy. The remaining 35 trucks will be deployed in the first quarter of 2012. The purpose of the program is to demonstrate the technology under real-world conditions and assess customer acceptance. Chrysler Group is also developing PHEV technology on minivans with flexible fuel (E85) capability, for which a 25-strong vehicle demonstration fleet will be deployed in 2012. Another example of collaboration in this field is Chrysler Groups partnership with the US Environmental Protection Agency which began in 2010. The aim is to determine the possibility of adapting an hydraulic hybrid system for large passenger cars and light-duty vehicles. In industrial applications, including large delivery and refuse trucks, the technology has shown substantial increases in fuel economy when compared with traditional powertrains in the same type of vehicles.
As for the optimization of vehicle energy demand, the Group continues to research vehicle applications for thermal management that will not only help reduce fuel consumption, but will also be a critical factor in extending vehicle range for hybrid vehicle models in the future. Chrysler Group research currently includes strategies to warm engines and transmissions faster, having vehicles run at an ideal temperature set point and recapturing waste heat. In fact engines and transmissions run most efficiently when they are warm wasted heat is lost energy, so recapturing and using it saves energy. Furthermore, at the Centro Ricerche Fiat, Smart Cooling systems for integrated thermal management are being developed, which will help boost the energy efficiency improvement of next generation vehicles through two levels of heat rejection: high temperature heat dissipation (e.g., engine heat) and low temperature heat dissipation for the local cooling of the vehicles auxiliary systems (e.g., charge air cooler, air conditioning condenser). The benefit estimated on real use fuel consumption is up to 5%.
Economic dimension
iStockphoto.com/Pgiam
The road leading to a goal does not separate you from the destination; it is essentially a part of it
Charles de Lint
Environmental dimension
93 113
Ecological mobility
Environmental dimension
93
Ecological mobility
Fiat Groups commitment to sustainable mobility is an essential part of its business strategy. Reducing the environmental impact of vehicles throughout their life cycle is the objective that steers the development of innovative solutions aimed at minimizing fuel consumption, emissions and noise while reducing trafc congestion and improving product recyclability. Technological solutions can bring significant benefits for the environment only if they are embraced by a large number of consumers. For this reason, the Group strives to deliver affordable solutions to the wider public.
Environmental dimension
94
Environmental dimension
Ecological mobility
In particular, Fiat Group Automobiles reduced the average CO2 emissions of cars sold in Europe by 22% in the last ten years. The Fiat brand has been confirmed, for the fifth consecutive year, as having the lowest average CO2 emissions among the bestselling automotive brands in Europe with 118.2 g/km (source: JATO Dynamics, the worlds leading provider of automotive intelligence). In 2011, approximately 65% of newly-registered Fiat Group Automobiles cars in Europe had CO2 emissions at or below 120 g/km and 79% at or below 130 g/km.
New registrations by CO2 emission level
Fiat Group Automobiles Europe
These strategic choices have delivered major results on the emissions and fuel economy front, particularly in Europe and the US, which represent approximately 60% of the Groups 2011 vehicle sales (which total more than four million shipments worldwide). In Europe, in 2011 Fiat Group maintained its leading position with average CO2 car emissions of 123.3 (1) g/km. Not including Chrysler Group, the average totaled 120.6 g/km, representing a 4% reduction compared with 2010.
Average CO2 emissions for new registrations
Fiat Group Europe (g/km)
up to 110 g/km
21%
27%
121-130 g/km
111-120 g/km
14%
38%
123.3(1) 120.6
2008
2009
2010
Including Chrysler Group
2011
The best-selling model was the Fiat Panda 1.2 69 hp, with CO 2 emissions of 113 g/km. The Groups most efficient models were the Fiat 500 TwinAir Turbo 85 hp, featuring Automated Manual Transmission (AMT), the Fiat Punto 1.3 Multijet 85 hp Start&Stop and the Alfa Romeo MiTo 1.3 Multijet 85 hp Start&Stop, all with CO 2 emissions of 90 g/km. In 2012, the zero emission Fiat 500 electric will be launched in the US market. In the US, fuel economy expressed in miles per gallon is the parameter used to measure vehicle efficiency. In 2011, sales-weighted average fuel economy for Chrysler Group
(1)
95
passenger cars improved by 6.4% over the previous year, while fuel economy for the entire fleet, which includes light duty trucks, remained flat. CO2 data will be available for the US starting with the 2012 model year as specified by the US Environmental Protection Agency.
Fuel economy of vehicles sold in the US according to Corporate Average Fuel Economy CAFE (1)
Chrysler Group US (mpg)
23.9
24.3
24.3
2009
Passenger cars
2010
Average across vehicle fleet(2)
2011
Light Duty Trucks
In countries where specific legislation governing CO2 emissions or fuel economy does not yet exist, Fiat Group vehicles nonetheless feature leading-edge technology for reducing fuel consumption and emissions. In Brazil, for example, where approximately 20% of Group vehicles are sold, the Fiat 500 1.4 16V MultiAir was launched in 2011. This vehicle won the CAR Award 2012 and was named best Environmental Car by CAR Magazine Brazil, one of the most respected publications in the industry. Fiat Brazil is also participating on a voluntary basis in the governments INMETRO program for monitoring vehicle fuel consumption. The Group achieved these key milestones by offering solutions that are concrete, affordable and immediately deployable, while still keeping an eye on the future. Even the most effective technologies cannot have a significant impact on the environment if they are too expensive to reach a sufficiently great number of people. Delivering affordable technologies to consumers is the foundation of Fiat Groups product strategy.
(1) Data is reported to the National Highway Traffic Safety Administration (NHTSA) and provided by model year, meaning the year used to designate a discrete vehicle model, irrespective of the calendar year in which the vehicle was actually produced, provided that the production period does not exceed 24 months. (2) CAFE standards from NHTSA are set independently for passenger cars and light duty trucks. The vehicle fleet average and related trend are presented here only for informational purposes. (3) As used in this paragraph, the term Fiat refers to Fiat Group excluding Chrysler Group.
Environmental dimension
96
Environmental dimension
Ecological mobility
Conventional engines
The Group strives to develop and produce engines that apply innovative technological solutions to cut fuel consumption and vehicle emissions. With respect to gasoline engines, in 2011 the two-cylinder TwinAir family, ranging between 65 and 105 hp, continued to be rolled out to further models, including the new Fiat Panda and the new Lancia Ypsilon (and consequently the Chrysler Ypsilon sold in the UK). The only two-cylinder turbocharged gasoline engine of its kind in the world, the TwinAir represents the latest frontier in engine downsizing, achieving 30% less CO2 emissions compared with engines of similar performance (16V 1.4-liter gasoline version). The TwinAir Turbo 85 hp has the lowest CO2 emission levels of any gasoline engine in Europe (90 g/km on Fiat 500 with AMT transmission). In recognition of its technological excellence, it was named International Engine of the Year 2011 by an international panel of 76 journalists. MultiAir technology was also extended to the new Fiat Panda and new Lancia Ypsilon, as part of the TwinAir engine. The heart of MultiAir is an electro-hydraulic valve management system that reduces fuel consumption by controlling air directly via the intake valves without using the throttle. Thanks to improved combustion control, MultiAir reduces polluting emissions while simultaneously enhancing performance by improving drivability. Compared with a traditional gasoline engine of equal displacement, MultiAir engines provide an increase in power of up to 10% and in torque of up to 15% in
addition to a signicant reduction in CO2 emissions of up to 10%. Fiat Powertrain Research and Technology has already gone a step further and developed the new and improved MultiAir II, featuring next generation intake valve management and combustion control, thus enabling a further reduction in CO2 emissions without compromising performance, drivability or customer perception. MultiAir II will soon be available on Fiat Group Automobiles models equipped with TwinAir and FIRE engine families. In 2011, Chrysler Group introduced the highly efficient Pentastar V-6 engine on the Jeep Wrangler. The engine, originally launched on the Jeep Grand Cherokee in 2010, is currently standard or available on 12 vehicles representing 39% of Chrysler Groups vehicle sales. The Pentastar V-6 engine improves fuel efciency by an average of 7% over its predecessors. It was designed with a flexible architecture, so it can be used together with a variety of advanced technologies, such as Fiats MultiAir technology, direct injection or turbocharging. It will contribute substantially to Chrysler Groups goal of increasing its product portfolios fuel economy by at least 25% by 2014. In December 2011, Wards Automotive honored the Pentastar engine as one of the 10 Best Engines for the second consecutive year for its exceptional fuel economy, emissions and power.
97
Finally, Chrysler Groups Fuel Saver Technology on the HEMI eight-cylinder engine family is another innovative solution that improves fuel economy. By means of cylinder deactivation, it seamlessly alternates between high fuel economy four-cylinder mode when less power is needed and V-8 mode when more power is required. In 2011, 80% of V-8 engines sold incorporated this technology. An innovative cylinder deactivation system based on MultiAir technology is also under development at Fiat Group Automobiles. With respect to diesel engines, the new 1.3-liter MultiJet II diesel 85 hp, launched in 2011, was made available on the Fiat Punto and Alfa Romeo MiTo and Giulietta. This engine incorporates the eco-Turbo strategy that leverages turbocharger-engine matching and gearset optimization to improve low-end torque, driving comfort and fuel performance. MultiJet II technology guarantees ecoefficiency and performance through the use of advanced combustion technologies, such as Injection Rate Shaping (IRS). With IRS, the main injection typical of the MultiJet is
replaced by two consecutive injections without a hydraulic interval, generating significant improvements in terms of fuel consumption (up to 3% lower) and harmful emissions (potential 20% reduction in NOx). The 1.3-liter MultiJet II 85hp includes all-new Smart Alternator and Intelligent Flow technologies, which enable the diesel Punto and MiTo to achieve 90 g/km of CO2 emissions, among the lowest in its segment. Specifically for the North American market, Chrysler Group will soon introduce an advanced, lowemission diesel engine for light duty vehicles which will significantly reduce CO2 while still meeting strict US NOx and particulate matter emission requirements. With the aim of further reducing emissions from conventional engines, short-term development plans for the Group include the introduction of I-Efficiency on both gasoline and diesel engines in Fiat Group Automobiles (FGA) vehicles. I-Efficiency consists of a series of actions designed to reduce engine friction, improve the warm-up phase and electronically manage engine power.
Environmental dimension
98
In the pipeline
Innovation
Fiat Group Automobiles and Chrysler Group brands START&STOP II MULTIAIR ADVANCED COMBUSTION SYSTEMS ADVANCED EXHAUST AFTER-TREATMENT ENERGY RECOVERY - EXHAUST HEAT
Gasoline
Fiat Group Automobiles brands MULTIAIR START&STOP CYLINDER DEACTIVATION Chrysler Group brands Fiat Group Automobiles brands MULTIAIR II CYLINDER DEACTIVATION I-EFFICIENCY DISPLACEMENT DOWNSIZING START&STOP Chrysler Group brands Fiat Group Automobiles and Chrysler Group brands MULTIAIR INTEGRATED WITH DIRECT INJECTION START&STOP II ADVANCED COMBUSTION/BOOSTING SYSTEMS ENERGY RECOVERY - EXHAUST HEAT
BATTERY ELECTRIC
Transmissions
Fiat Group Automobiles brands Chrysler Group brands Fiat Group Automobiles brands 7-SPEED DDCT 9-SPEED AUTOMATIC Chrysler Group brands DDCT Fiat Group Automobiles and Chrysler Group brands SPECIFIC TRANSMISSIONS FOR HYBRID/ELECTRIC
(1)
99
Alternative fuels
A fundamental aspect of Fiat Groups vehicle emission reduction strategy centers on the use of alternative fuels. From natural gas to biofuels, the goal is to reap the benefits that these fuels offer based on their availability in the various markets where the company does business.
Natural gas
Fiat Group believes that natural gas is currently the best existing solution available for reducing urban pollution levels and CO2 emissions. In fact, today it is the cleanest fuel as well as the most economical, making it the only real alternative to gasoline and diesel. Specifically, natural gas: produces the lowest levels of harmful emissions, from particulate matter (which is reduced to essentially zero) to the most reactive hydrocarbons minimizes emissions that most negatively impact air quality (such as nitrogen oxides) produces 23% less CO 2 emissions than gasoline combustion has the potential to become a renewable fuel source in the form of biomethane
Newly registered natural gas cars by CO2 emission level
Fiat Group Automobiles Europe
up to 120 g/km
96%
and only automaker to offer an eco-friendly bi-fuel (natural gas/gasoline) Natural Power range, satisfying the needs of a wide variety of consumers, including commercial customers. The range features passenger cars and commercial vehicles for a total of eight models, with no compromise on comfort and safety. In fact, the natural gas tanks are fully integrated into the vehicle structure at the design phase. In 2011, there was a further reduction in demand for natural gas vehicles, following the already significant decline experienced in 2010, due to the phase-out of government incentives for eco-friendly vehicles and to the general contraction in Italian market demand. Nevertheless, Fiat Group Automobiles confirmed its undisputed leadership of the market sector, with a share of 65% corresponding to over 42,000 natural gas vehicles in Europe.
Natural gas cars as a percentage of total sales
Fiat Group Automobiles Italy
4%
13%
Fiat Group Automobiles has been Europes leading producer of Original Equipment Manufacturer (OEM) natural gas vehicles for more than a decade. It is the first
2008
2009
2010
2011
Environmental dimension
100
Environmental dimension
Ecological mobility
Fiat strives to offer products and services responding to market demands. To meet the needs of customers, the www.fiat.it website, in partnership with Ecomotori.net, now features a new service for locating natural gas service stations across Italy. New developments in natural gas are also in the pipeline. In 2012, the new Fiat Panda will adopt the TwinAir Turbo natural gas/gasoline engine for the first time. In addition, building on Fiats long experience in the development of natural gas-powered vehicles, Chrysler Group has announced it will become the only manufacturer in North America to offer a factory-built natural gas pickup truck, the Ram 2500 Heavy Duty CNG.
Biofuels
Fiat Group is investing heavily in technologies capable of optimizing the use of available natural resources. That commitment has propelled Fiat Group to leadership in the Brazilian market with its full range of Flexfuel vehicles that run on varying blends of gasoline and bioethanol. Another example of Fiat Groups technological excellence in this area is the TetraFuel engine (patented by Magneti Marelli and applied by Fiat Powertrain), the first in the world capable of running on four different fuels: bioethanol, Brazilian gasoline (refined crude oil and 22% anhydrous ethanol), gasoline and natural gas. In 2011, a total of 736,000 Flexfuel and TetraFuel vehicles were sold in Brazil, accounting for 98% of all sales. This result was largely achievable because of the extensive bioethanol distribution network in Brazil, made possible by long-standing government policies and readily available raw materials. In addition, all Fiat Powertrain engines sold in Europe are compatible with blends of up to 10% bioethanol with gasoline (E10) and up to 7% biodiesel with diesel (B7). Chrysler Group is also committed to producing vehicles that are capable of using alternative, renewable fuels. Since 1998, Chrysler Group has produced more than 2.5 million Flexible Fuel Vehicles (FFV) capable of running on E85, which contains 85% ethanol. In 2011, 46% of Chrysler Group vehicles sold in the US were flexible fuel capable, and the company has committed to raise this percentage to 50% in 2012. Additionally, all Chrysler Group diesel vehicles are compatible with blends of up to 5% biodiesel with diesel (B5), and certain fleet trucks are approved for B20 (blends of up to 20% biodiesel with diesel).
Biomethane
In the transportation sector, natural gas has a strategic role to play as a bridging technology in promoting the adoption of renewable energy for the development of an even more sustainable fuel option: biomethane. Produced from biomass (without affecting food resources), biomethane is chemically similar to natural gas. From a well-to-wheel point of view, biomethane-powered vehicles produce roughly the same CO2 emissions as an electric vehicle powered by a renewable fuel. As such, biomethane can help countries like Italy meet its renewable energy commitments. All of Fiat Group Automobiles natural gas engines are biomethane compatible. To promote the use of this fuel, the Group is also working on research projects for fostering the development of a biomethane supply chain (see page 88).
101
Non-conventional propulsion
Alongside its work on improving traditional internal combustion engines and promoting the use of alternative fuels, the Group is also developing alternative propulsion systems, especially for vehicles used in a predominantly urban setting. Chrysler Group, with its expertise in hybrid and electric technologies, is the vehicle electrification center for the entire Group. The resources that were previously spread over various electrification development organizations across the Group have now been gathered and integrated into the Powertrain and Vehicle Engineering departments. Accordingly, Chrysler Group is developing technologies that can be used in a range of electrified vehicles, including conventional hybrids, plug-in hybrids, fully electrified and range-extended electric vehicles. The main hurdle that needs to be overcome is the cost of such technologies. The team is challenged to deliver high-value solutions cost effectively, while continuing the evolutionary improvement of internal combustion engines in a rapidly developing technical area. The first Battery Electric Vehicle (BEV) of the Group will be launched in 2012 in the US market: the Fiat 500EV. It will be capable of a 100-mile range on a single battery charge. The distinctive feature of this zero-emission electric vehicle is the powertrain which consists of three main systems: a high-output electric module, advanced lithium-ion battery (produced by SB LiMotive, a JV between Samsung and Bosch) and an EV control unit to manage power flow. The powertrain and vehicle are being developed at the Chrysler Group Headquarters and Technology Center in Auburn Hills, Michigan. In addition, the Group has established partnerships with several government entities, universities and other organizations to develop electric technologies. In particular Chrysler Group is conducting specific research projects to demonstrate plug-in technology in real-world conditions, and to investigate the possibility of adapting a hydraulic hybrid system for large passenger cars and light-duty vehicles (see also page 89).
Transmissions
Transmissions also play an important role in the reduction of fuel consumption and CO2 emissions. In fact, the Groups engineers work specifically on engine-transmission pairings to obtain the most efficient powertrain solutions for each vehicle segment. By striking an optimal balance between performance, fuel economy and costs, the Automated Manual Transmission (AMT), adopted by Fiat Group Automobiles (FGA) on small cars and light commercial vehicles, can cut CO2 emissions by up to 10% in urban driving conditions. The AMT, developed and produced by Magneti Marelli, is based on electro-hydraulic automation of manual transmissions and combines comfort with a reduction in fuel consumption and emissions. It replaces gear selection and clutch activation with electro-hydraulic components, using an electronic control unit to select the correct gear for all driving conditions. In 2011, for the third consecutive year, this technology earned Magneti Marelli the AutoData award for best System Supplier, one of Brazils most prestigious automobile industry honors. In 2011, Chrysler Group introduced a new eight-speed rear-wheel drive automatic transmission for passenger cars and light-duty trucks. Available on the Chrysler 300, Lancia Thema and Dodge Charger, it improves fuel
Environmental dimension
102
Environmental dimension
Ecological mobility
consumption by up to 10% over Chrysler Groups current five-speed transmission. This transmission will ultimately be used on all rear-wheel drive vehicles except the diesel heavy-duty versions of the Ram truck. A new nine-speed front-wheel drive transmission will be introduced soon in Chrysler Group medium-duty vehicles. In addition, following its launch in 2010 on the Alfa Romeo MiTo, the Dual Dry Clutch Transmission (DDCT) is being extended to higher segments. Under the name TCT, it is available on both the gasoline and diesel versions of the Alfa Romeo Giulietta. This transmission, developed and manufactured by Fiat Powertrain, incorporates 23 patented technologies. It offers significant reductions in fuel consumption and CO2 emissions, as well as improved driving comfort. The DDCT combines the basic mechanical system of a conventional manual transmission with an electronically controlled shifting system which the driver operates like an automatic transmission for ease of use. Chrysler Group will adopt FGAs DDCT in 2012 starting with the new Dodge Dart equipped with the 1.4-liter Turbocharged MultiAir engine.
Other technologies
Several other technologies also contribute to reducing fuel consumption and emissions by lowering energy demand of vehicles. A few such technologies are Start&Stop, Gear Shift Indicator, Smart Alternator and Electric Power Steering. The Start&Stop system was developed by Fiat Group Automobiles (FGA) Research & Development in collaboration with Fiat Powertrain and Magneti Marelli. Start&Stop shuts off the engine whenever the vehicle is stopped and the engine is idling, and restarts it when the driver engages the clutch. The main benefit is a significant reduction in fuel consumption and CO 2 emissions, particularly when driving in congested conditions with frequent stops at traffic lights. The system offers a reduction of around 10% in fuel consumption and emissions in congested conditions, or 3.5% based on the New European Driving Cycle (NEDC). In 2011, the system was introduced on the new Fiat Panda and new Lancia Ypsilon, and is standard with the TwinAir and Multijet II engines. Chrysler Group has also incorporated FGAs Start&Stop into the 2011 Jeep Wrangler diesel in Europe and is developing the technology for North America. FGA is working on a second-generation Start&Stop system with more advanced engine shut-down techniques
103
that can enhance the reduction of carbon dioxide emissions during urban use, cutting emission levels by around 20% compared with vehicles without Start&Stop. This new version of Start&Stop will become available on new models within the next few years. The Gear Shift Indicator (GSI) is a virtual co-pilot that discreetly suggests when to shift gears, leading to more efficient engine use in terms of consumption and CO2 emissions. In 2011, GSI was introduced on the new Fiat Panda and new Lancia Ypsilon models. Additionally, the new Fiat Panda and new Lancia Ypsilon adopted the Smart Alternator, a system that enables battery charge to be managed independently, thus limiting energy demands on the engine. With respect to near-term developments, Chrysler Group is implementing electric power steering beginning with the new compact/large segment platform in 2012. This system reduces energy losses through the use of an electric motor that is energized when needed by the vehicles electrical system. According to the US Environmental Protection Agency (EPA), electric power steering can reduce CO2 emissions by 1.52%. Finally, the Group continues to research vehicle applications for thermal management, which optimizes the ways vehicle energy is used, extracted and reused (see also page 89), resulting in marked improvements in emission and consumption levels.
Vehicle architectures
Fiat Group focuses on minimizing vehicle weight, aerodynamic drag, rolling resistance and the energy demands of auxiliary systems in order to achieve an optimal balance between vehicle safety, comfort and emission levels. In 2011, best-in-class architectural solutions were implemented on the new Fiat Panda and new Lancia Ypsilon. In order to reduce vehicle weight while ensuring a very strong, rigid structure, the latest generation steel was used, with High-Strength Steels (HSS) accounting for over 70% of the new Pandas weight. Furthermore, to reduce the thickness of sheet metal in vehicle bodies, Ultra High-Strength Steels (UHSS) were used to maximize interior space without adding weight.
(1) GENIVI is an alliance consisting of over 150 companies located around the world, whose main goal is to guide the widespread adoption of an open-source platform for IVI devices.
Environmental dimension
104
Environmental dimension
Ecological mobility
Weight reduction activities on the new Panda have also been conducted on relevant vehicle systems, such as rear suspensions for the all-wheel drive version and body insulation and damping components. This has reduced the weight of these systems by 6.5 kg and 3 kg respectively compared with the components they replaced. As a result, the new Panda has achieved the best weight/volume ratio in its segment. Because weight reduction is equally important in larger vehicles, Chrysler Group has increased its use of HSS as well. For example, the 2011 Chrysler 300 body is composed of 60% HSS by weight. For 2012, the all-new Dodge Dart uses a state-of-the-art architecture with nearly 70% of the body composed of HSS. To reduce weight, the Group continues to research innovative solutions. As an example, Chrysler Group has signed a commercial agreement with an affiliate key supplier, ZF
10.8%
Austenitic Steel
0.4%
Low Carbon Steel
1%
Ultra High-Strength Steel
27.3%
3.5%
22%
35%
Getriebe GmbH, to produce lightweight and efcient axles. This relationship affords access to advanced axle technologies on an expedited timeline. The proprietary ZF axles weigh up to 34% less than, and improve fuel efficiency by 2% relative to, comparable axles. Chrysler Group began to incorporate the ZF axles in the Jeep Grand Cherokee and Dodge Durango in 2010 and in Ram trucks in 2011. Additionally, in 2011 Magneti Marelli developed and tested a new solution for suspension control arms made of carbon fiber-reinforced plastic. This material enables up to a 50% reduction in the weight of the component compared with other best-in-class solutions available on the market. The Group also works to reduce aerodynamic drag, starting right from the design stage of its vehicles. Vehicle profile is optimized by measuring aerodynamic performance at the world-class, full-scale, aerodynamic wind tunnels at FGA and Chrysler Group Headquarters and Technology Centers. Studies on the new Fiat Panda, for example, led to a 3% reduction in the Cx coefcient, which measures a vehicles aerodynamic drag. Other architectural features which are designed to minimize fuel consumption on the new Fiat Panda focus on the vehicles wheels and tires, which resulted in a 30% reduction in rolling resistance.
105
Customer involvement
The environmental impact of vehicles is strongly influenced by consumer driving behavior and the level of vehicle maintenance. Fiat Group extends its interests beyond the sale of its products by promoting environmentally conscious and eco-friendly driving. To this end, the eco:Drive system was developed in order to engage with consumers and encourage them to contribute directly to reducing mobility-related emissions. Provided free of charge and downloadable on the owners personal computer from the website www.fiat.com/ecoDrive, this user-friendly application provides personalized suggestions
Environmental dimension
106
Environmental dimension
Ecological mobility
to help drivers improve their behavior at the wheel, thus optimizing fuel consumption and vehicle emissions. Eco:Drive is the first and only software of its kind to offer drivers helpful tips that are personalized based on their driving style. All users of the eco:Drive system are members of eco:Ville, the online community that collects and reports the energy savings achieved through the efforts of eco:Drivers. To date, more than 82,000 users have saved a total of 4,600 tons of CO 2 by improving the way they drive. Developed for all Fiat and Fiat Professional brand vehicles in Europe, the software includes specific functions that allow energy savings to be measured as a result of the Start&Stop system and the use of natural gas. A special version, eco:Drive Fleet was developed for corporate fleets, enabling companies and haulers to monitor fuel consumption and CO2 emissions and hence the costs of their fleet vehicle use. In order to extend the adoption of eco:Drive, the software is being launched in new markets. New features are continuously being developed in order to make it more fun and engaging. In 2011, the software was introduced in Brazil, the US and Canada. The eco:Drive Mobile application was recently launched on Androidbased smartphones and on Apple iPad, providing the ability to receive direct feedback on smartphones and tablets. This application allows drivers to view their performance immediately and thus improve their driving behavior on the spot. In addition, thanks to integration with social networks, the communication of results and prizes will be possible. Fiat Group does not limit itself to developing technologies that reduce CO2 emissions; it also plays an active role in encouraging young people to drive responsibly. One example
is the Ecopatente project which is promoted by the Italian environmental association Legambiente. Following the success of its first two years, involving 6,000 driving schools and resulting in awards of 25,000 Ecopatente licenses, Fiat and Magneti Marelli reconfirmed their commitment to the project. In 2011, the Group was the main partner along with CONFARCA and for the first time UNASCA, two nation-wide industry associations which together represent 70% of Italian driving schools. In addition to being taught how to use a vehicle correctly and eco-sustainably, student drivers enrolled in these schools were also educated on topics such as respecting the environment and energy efficiency. In 2011, the project was also introduced in Spain, where it met with remarkable success. Finally, the Group also seeks to focus customer attention on maintenance. Proper maintenance undoubtedly also has a positive impact on fuel consumption and emission reduction. Convinced of the importance of this issue, in 2011 the After-Sales division of Fiat Group Automobiles (FGA) launched the website www.genuineparts.fiatgroup. com in several markets. Stressing the concept that nothing protects the environment like an original equipment part, the website offers eco-tips on maintenance alongside indepth information on the vehicle parts that impact the environment most heavily, with useful advice on when and why they should be replaced. Additionally, FGA continued its green CHECK-UP campaign, an educational project on correct maintenance promoted in various countries in Europe (Austria, Portugal, Greece, Czech Republic, Slovakia, Spain, Germany and the United Kingdom).
107
At Chrysler Group, an example of the employment of environmentally-friendly materials is the industry-rst, green vehicle seating material installed in the 2011 Jeep Grand Cherokee and Dodge Durango. With the implementation of this new material, Chrysler Group avoided the use of foodbased soy polyols (a popular option for bio-polyols in foam production) and instead utilized a unique polyol obtained from scrap foam destined for landfills. Therefore, a perfectly reusable waste material has taken the place of a plant-based material and potential food source.
Percentage of recycled materials (1)
Fiat Group Automobiles (% of total raw material used)
39.3%
40.8%
Environmental dimension
0.0%
Fluids Total average
Cast iron
Steel
Other(2)
Other metals
96.0% 94.6%
Light alloys
Polymers
Glass
32.3%
31.5%
0.8%
Steel Cast iron Other(2) Light alloys
0.0%
Polymers
0.0%
Other metals
0.0%
Glass
0.0%
Elastomers
0.0%
Fluids Total average
Average for Fiat Group Automobiles existing range of type-approved vehicles in 2011, based on Directive 2005/64/EC. Aside from other metals. Average for Chrysler Group existing range of type-approved vehicles in 2011, based on Directive 2005/64/EC.
108
Environmental dimension
Ecological mobility
Further opportunities have been identified with the adoption of recycled nylon carpet fiber for intake manifolds, reducing the need for virgin petroleum-based nylon. The commitment of FGA in the application of innovative biopolymers received a prestigious international recognition in this area. FGA, along with its suppliers DuPont Automotive and Hutchinson, won the 2011 Plastic Innovation Award, from the Society of Plastic Engineers (SPE) for the industry-first employment of PA 10/10, a bio-resin (derived from castor oil with minimum biopolymer content of 60%) for the production of fuel lines for diesel engines.
Other(3)
Steel
1.9%
Other metals
59.1%
2.7%
Glass
2.9%
Elastomers Polymers
4.1%
Light alloys
12.8%
Cast iron
4.5%
Fluids
7.3%
4.7%
Composition of vehicles by material (4)
Chrysler Group (% total vehicle weight)
Fluids(5)
Steel
0.9%
Other metals
61.2%
1.6%
Glass
2.4%
Cast iron
2.5%
Elastomers
Polymers
11.6%
Light alloys
3.9%
Other(3)
9.9%
6.0% international level. In Europe it has signed contracts with local dismantling agents and special service providers for the management of ELVs. Outside the European Union, laws on the handling of ELVs currently exist only in certain countries, while others are evaluating the adoption of specific standards. In countries with specific laws in place, FGA has set up local networks such as in Turkey where 81 collection centers are extensively distributed across the entire country or has met the legal recovery and recycling obligations financially, as in Croatia.
Please note that data is published with two years delay. 2011 data will be available in 2013. Average for Fiat Group Automobiles existing range of type-approved vehicles in 2011, based on Directive 2005/64/EC. Aside from other metals. (4) Average for Chrysler Group existing range of type-approved vehicles in 2011, based on Directive 2005/64/EC. (5) Weight of uids includes all vehicle uids except gasoline.
(2) (3)
109
During 2011, FGA further enhanced activities for the management of its ELV network. In Italy, a detailed qualitative performance appraisal of the network was conducted while simultaneously increasing the number of dismantling agents that handle all Group vehicles, for a total of 290 service providers (+7% over 2010). Chrysler Group is also committed to the recycling and recovery of end-of-life vehicles and partnered with other automotive companies to create the US End-of-Life Vehicle Solutions Corporation (ELVS) to foster the industrys environmental efforts in this area. With approximately 9,000 auto dismantling operators in the US, every year end-of-life vehicles produce more than 14 million tons of steel among other materials that
(1) FELIS also provides the 3R Project program with raw data useful for recoverability and recyclability calculations.
Environmental dimension
110
Environmental dimension
Ecological mobility
can be reused and recycled (source: www.autoalliance.org). In addition, Fiat Group actively collaborates in updating the International Dismantling Information System (IDIS), a database developed by the automotive industry that stores component and materials information. This database seeks to optimize the dismantling procedures currently covering 1,680 different models and variants from 67 car brands. System access and use is free of charge for any business that handles end-of-life vehicles. A move was also made toward research activities on energy recovery from the material left over after a vehicle has been shredded and is no longer recyclable, known as fluff, and the recycling of materials originating from end-of-life vehicle parts (e.g., tires). FGA has launched a major project in this area, known as Target Fluff, which was presented as part of the Italian Industria 2015 innovation program. Managed by the Centro Ricerche Fiat (CRF) on behalf of Fiats End-of-Life Vehicle division, the project involves three industrial groups that have a long history in the shredder business. The project calls for the establishment of innovative facilities for recycling and energy recovery from car fluff using highly-efficient processes. Experiments and research (including Life Cycle Assessment analysis) conducted by the CRF on energy recovery technologies (pyrolysis, pyrogasification and gasification) were completed, and in 2011 the first pilot plant was launched. This research
and development project, partially funded by the Ministry for Economic Development, will contribute to increasing recycling and recovery of fluff, transforming a significant source of waste into recycled material and energy. Fiat Group is also engaged in promoting the recycling of materials that come from ELVs by using innovative technology and seeking new potential markets. In Italy, for example, FGA and the industry associations involved in managing end-of-life vehicles play a fundamental part in ensuring the recycling of end-of-life tires, minimizing collection and management costs which are currently funded by an environmental contribution on the purchase of new vehicles. FGA has also continued research and development activities geared towards identifying potential new markets for materials coming from the recycling of end-of-life tires, similar to previous initiatives for bumpers. FGA and the CRF have been involved for a number of years in many projects to promote the use of rubber from end-of-life tires for the manufacture of road asphalt. These initiatives deliver clear benefits in terms of safety, comfort, strength, noise level and environmental footprint. For the project LIFE+ TyRec4Life, which was granted funding by the European Union, Life Cycle Risk Assessment (LCRA) and Life Cycle Assessment (LCA) studies will be conducted to guarantee the safety and eco-sustainability of the product and process, while also verifying economic feasibility.
111
the goal of reducing overall energy consumption while making the introduction of low-environmental impact substances in the process technically feasible. Activities in 2011 have been centered predominantly on the process of cataphoresis. In the last few years, FGA has shown growing interest in compounds with natural bers and biological polymers (biopolymers) for automotive applications, and LCA has been conducted in particular on natural fibers. In fact, a study was completed for the adoption of an internal vehicle component in polypropylene recycled from ELVs and containing natural fibers, as well as for the prototype of a pillar made from polypropylene from end-of-life bumpers with corn fibers. In the coming years, FGA will combine technical feasibility assessments with the LCA analysis and will remain committed in the field of research and development for design solutions that use materials of natural origin. This will contribute to reducing the environmental footprint of materials and components during the different stages of their life cycle. Finally, a survey was initiated in 2011 to evaluate suppliers use of recycled materials and LCA analysis methodology. The objective is to involve suppliers in common projects as well as implement a database that enables the future development of a sector-specific eco-design tool for the automotive industry.
Environmental dimension
Environmental dimension
113
(1)
Of which 63.8% for waste disposal, emission treatment and remediation costs and 36.2% for prevention and environmental management costs.
Environmental dimension
114
Environmental dimension
emerging regulations, as well as to effectively manage the risk associated with any future increase in energy costs. In 2010, an Energy sub-pillar was introduced in the Environment pillar to improve the ability to identify and implement measures to reduce waste and achieve greater energy efficiency. The application of cost deployment at Fiat Group plants has enabled the identification of inefficiencies in the use of energy and the introduction of about 1,700 specific projects, which led to an energy savings increment of approximately 80% over 2010, for a total savings of 38 million. Moreover, in order to reduce the environmental impact of manufacturing processes and at the same time reduce waste, in 2011 about 1,900 projects were implemented that reduced consumption thus assuring a savings of 50 million. In order to manage and minimize environmental and safety risks, a preventive and proactive approach is employed. In the event of an accident, WCM calls for a rigorous analysis of the causes and application of the most appropriate procedures to reduce the risk of recurrence. Moreover, in case of an environmental accident or a natural disaster (e.g., hurricane, flood, earthquake, fire) all plants are covered under a contingency plan whose purpose is to
115
Organization
Fiat Group manages environmental protection through its internal organization. Each sector relies on its own department responsible for Environment, Health and Safety (EHS) topics, both at the central and plant level. Sector EHS managers are charged with overseeing facility environmental activities and direct capital investment dedicated to specific action plans. Moreover, they are in charge of monitoring national and local legislation, as well as rules and regulations related to the environment. They also conduct compliance audits and ensure that senior management and plant environmental professionals understand the potential impact of new or revised policies on their operations. Periodic meetings ensure coordination of Group activities. The EHS managers of each sector regularly discuss the results achieved, share best practice and carry out benchmark comparisons against principal competitors in key areas to define new actions. The progress of the 2010-2014
Environmental dimension
limit the events environmental impact, as well as to preserve the integrity of physical assets, guarantee the continuity of operations and limit financial implications in general. The success of World Class Manufacturing is also based on the participation of employees, who are periodically involved in targeted training programs. Everyone in the Group is continually encouraged to contribute suggestions, and every suggestion is considered and evaluated for potential application. In 2011, 80% of plant employees participated with a total of 1.6 million proposals for improving processes received worldwide, representing an average of 12 suggestions per employee. An essential contribution to extending the best processes to all plants derives from the sharing of best practice: in 2011, approximately 2,800 were approved and roughly 2,400 of these were extended within Fiat Group. Application of WCM methodologies and guidelines has also been extended beyond manufacturing. Similar initiatives have, in fact, also been developed for logistics with the aim of achieving an integrated approach across the various areas of activity. Fiat also continued to promote the adoption of WCM by suppliers (see also page 216).
Environmental Plan, which sets near-to-medium term targets for each sector relative to the principal areas of environmental focus (atmospheric emissions, water, biodiversity and waste), is subject to monthly joint monitoring. A dedicated IT platform ensures that environmental professionals receive constant updates and remain continually in contact with each other. This platform makes available training materials and documents on individual environmental areas (general and operational procedures, guidelines, reporting manuals, etc.) as well as the Standard Aggregation Data system and other applications used for reporting environmental performance data for individual plants and making comparisons with other plants in the same sector. The reporting applications will be replaced by a single application in 2013 to maintain compliance with international best practice.
116
Environmental dimension
Process certication
In conformance with the Environmental Guidelines, the Group considers the complete and uniform implementation of the Environmental Management System, certified according to ISO 14001 by accredited third parties, to be the best means for achieving a steady and constant reduction in the impact of manufacturing processes and for effectively achieving its environmental objectives. At year-end 2011, 139 Group plants that account for 97.3% of industrial revenues(1) were ISO 14001 certied. By the end of 2012, all Group plants operating worldwide in 2011 will be ISO 14001 certified. In 2011, the energy management requirements of the new ISO 50001 standard were integrated into the Environmental Management System affirming the Groups commitment to addressing all environmental impacts of its processes including those related to climate change. In the same year of the publication of this standard, six plants with high energy requirements (accounting for 5.5% of the Groups total consumption) attained certification. By 2014, all of the Groups main plants, accounting for more than 90% of total energy consumption, will be ISO 50001 certified.
increase employee understanding of their own personal impact on the environment. The internal employee websites dedicated to environment, health and safety and the Envision quarterly newsletter communicate information about policies, procedures, organizational responsibilities, publications, best practice, regulatory information and company requirements. The websites also provide links to external environmental internet sites and IT applications used in the management of environmental programs and training.
Training
Fiat Group believes that the true driving force behind improvement lies in the competence, knowledge and motivation of its employees. For this reason, a variety of methods are used to spread environmental know-how, promote awareness and encourage action planning throughout the company. During 2011, through the web platform and seminars held by internal environmental professionals, training of specialized personnel working within the Environmental Management System continued. Approximately 106,800 hours of environmental training was provided in 2011 for a total of 44,500 individuals, representing a major commitment on the part of the company. Training was focused on prevention; management of environmental aspects; Environmental Management System in compliance with the ISO 14001 standard and Energy Management Systems in compliance with ISO 50001. In addition, special training was conducted to
(1)
117
(1)
For the collection of data, Chrysler employs several similar applications. In 2013, a single application will be used throughout the Group.
Environmental dimension
trends. Due to the variety of very different production lines in the company (vehicles, engines, components, etc.), it is not possible to present normalized data at the group level. Also, within certain sectors (for example, Teksid and Fiat Powertrain) the different production lines require the adoption of a number of normalization parameters. This Report only lists the normalized data for Fiat Group Automobiles and Chrysler; for information on the performance and targets of each sector, see the sustainability section of www.fiatspa.com. Data for Chrysler Group is only available starting from 2010. Accordingly, Fiat Group data has been restated to include Chrysler Group as of 2010 to ensure uniformity of scope. For the same reason, sectors demerged into Fiat Industrial were excluded from the years 2010 and 2009. For the purposes of consistency with the scope of Fiat Group Automobiles, when Chrysler is indicated, the scope covers Chrysler Group assembly and stamping facilities; other remaining facilities (powertrain, foundry, etc.) are covered by Chrysler others.
118
Environmental dimension
2011(1) 30.1
43.0
19.5
18.9
2014 target
maintain 2010 levels
2007
(1)
2008
2009
2010
2011
2010
2011
Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (4) When indicated Chrysler the scope includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations.
(2) (3)
119
2011(2)
Plants 150
2010 (3)
148
2009 (4)
113
1,307 176 66
1,327 140 63
675 82 12
Water management
Access to water is an essential element for all socioeconomic growth and for preserving healthy ecosystems. As the population increases and development leads to an increase
(1)
Estimated emissions based on direct energy consumption. Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. (4) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (5) Data for Chrysler Group was not measured and consequently is not included in this gure.
(2) (3)
Environmental dimension
in the demand for ground and surface water, the pressure on water resources intensifies. Water scarcity is one of the primary issues facing governments, businesses and individuals in many parts of the world today. Water scarcity also exposes companies to business risks. Fiat Group is aware that addressing this issue requires action to implement potential solutions for reducing overall water consumption and ensuring the high quality of discharged water. In 2011, specific Water Management Guidelines were developed and distributed within Fiat Group (excluding Chrysler). These guidelines contain information on saving water, consistent with the corporate commitment to protecting the rights of future generations. They provide the principles for sustainable management of the entire water cycle and stipulate the technologies and management actions aimed at maximizing recycling and reuse and minimizing the discharge of pollutants. Fiat Group periodically maps the availability of water resources around the world, correlating the quantity of water available with the quantity consumed for each region. Areas where
120
Environmental dimension
Use
no
no
yes
10.6%
no
no
no
57%
the Group is present are subsequently overlaid. This analysis identified 13 plants located in areas where water may be considered a limited resource.(3) Accordingly, these plants undertook appropriate measures to improve water reuse and recycling. Further risk assessment activities concerning scarce water resources will be carried out in 2012 for all plants located in areas considered particularly affected by this issue. As a result of improvements in water cycle management and measures for water reuse in industrial processes, in 2011 the Group reduced overall water consumption by 12.7% over 2010 (from 34.2 to 29.9 million m3) and the percentage of water reuse in production cycles at Group plants worldwide was estimated at approximately 95.6%.(4)
Water withdrawal and discharge
Fiat Group worldwide (thousands of m3)
2011(5)
Plants 150
2010 (6)
148
2009 (7)
113
Withdrawal Groundwater Municipal water supply Surface water Other Total water withdrawal Discharge Surface water Public sewer systems Other destinations Total water discharge
(1) Water sources are regarded as signicantly affected by water withdrawals and/or discharges if they are designated protected areas or have high biodiversity value, or if the withdrawals and/or discharges of water account for more than 5% of the average annual volume of the water body concerned. Only surface water has been taken into account. (2) Accounting for more than 5% of annual average volume. (3) Water availability < 1,700 m3/(person per year). Source: FAOs global information system. (4) Data for Chrysler Group was not measured and consequently is not included in this gure. (5) Data includes Chrysler Group for the full year. (6) Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. (7) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011.
121
In 2011, Fiat Group Automobiles (FGA) reduced water consumption per vehicle produced by a further 15.9% over 2010 (a 38.1% reduction over 2006), while Chrysler achieved a 20% reduction compared to the previous year. For 2014, FGA has committed to an overall reduction of 25% over 2009 levels (equal to -40% over 2006), and Chrysler has committed to -20% by 2014 over 2010. FGA also improved its water recycling index(1) from 94.6% in 2009 to 97.4% in 2011. For further details see pages 240-241.
Water withdrawal
Fiat Group Automobiles worldwide (m3 per vehicle produced) Chrysler(2) worldwide (m3 per vehicle produced)
7.29
6.83
4.53 3.62
2006
2007
2008
2009
2010
2011
2010
2011
Total water requirement of which covered by recycling of which water withdrawal Water recycling index (%)
One area that Chrysler Group focused on in 2011 was the capture and reuse of rainwater. With the increasing scarcity and cost of water and of wastewater services, rainwater harvesting is becoming more environmentally and economically strategic. The Dundee, Michigan engine plant implemented an innovative project to collect rainwater and mix it with purchased water in order to reduce municipal water usage. The rainwater collected throughout the year is
used as cooling water in manufacturing processes. The quality of water discharged from Group plants worldwide was maintained well within regulatory limits. In particular, analyses conducted on water discharged from FGA plants worldwide revealed levels of Chemical Oxygen Demand (COD) at least 89% below regulatory requirements, while levels of Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) were at least 68% and 55% below required limits respectively. For the first time, absolute values for water quality are published in this Report (see page 241). In 2012, further parameters among those most significant for the relevant industrial processes such as heavy metals discharged in water will be published for all Group sectors in order to ensure a comprehensive view of Fiat Groups overall impact on water quality. No signicant spills were reported for the Group in 2011.
Total water recycled in production processes as a percentage of the total water requirement. When indicated Chrysler the scope includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations. Data restated to exclude companies demerged into Fiat Industrial S.p.A.
Environmental dimension
122
Environmental dimension
Waste management
The reduction of waste generated and the increase of waste recovered or reused is a crucial commitment for Fiat Group. For this reason, the company maximizes use of all materials, which in turn minimizes waste. The Group strives to ensure that what cannot be reused is recycled. When waste generated cannot be recycled or reused, it is disposed of, seeking to use technologies with minimal environmental impact (waste-to-energy conversion or treatment, with shipment to landfills only as a last resort). The Group also monitors the level of waste dened as hazardous produced during manufacturing processes, in accordance with the applicable legislation in each individual country. Particular importance is given to reducing the generation of such waste, since by its very nature it is less suitable for recovery. In 2012, specific guidelines on waste management will be drawn up and distributed. The 20102014 Environmental Plan has set ambitious targets related to waste at plants with a focus on total waste per unit, hazardous waste per unit, waste recovery rate and rate of waste sent to landfill. The specific targets set for each sector may be consulted at www.fiatspa.com under the sustainability section. In 2011, the increase in production volumes for some sectors resulted in a corresponding increase in total Group waste generation; however, thanks to proper environmental practices, hazardous waste decreased by about 18%.
Waste generated per unit of production
Fiat Group Automobiles worldwide (kg per vehicle produced)
2011(1)
Plants 150
2010 (2)
148
2009 (3)
113
Waste generated 1,804,698 1,650,257 1,007,897 Non-hazardous waste 50,614 Hazardous waste 61,754 50,161 Total waste generated 1,855,312 1,712,011 1,058,058 of which packaging 97,099 90,982 62,594 Waste disposed 23,336 Waste-to-energy conversion 21,609 18,110 37,489 Treatment 43,936 46,926 547,056 Sent to landll 515,434 332,860 Total waste disposed 607,881 580,979 397,896 Waste recovered Total waste recovered 1,247,431 1,131,032 660,162 67.2% waste recovered 66.1% 62.4% 29.5% waste sent to landll 30.1% 31.5%
In 2011, Fiat Group Automobiles (FGA) recorded a decrease of 6% over 2010 (from 208.9 to 196.3 kg/vehicle produced) in overall waste generated per vehicle produced and a decrease in hazardous waste per vehicle produced of 32.4% (from 10.2 to 6.9 kg/vehicle produced). Overall waste generated at Chrysler plants worldwide per vehicle produced remained mainly stable over 2010, while there was a decrease in hazardous waste per vehicle
229.2
7.5
199.1
7.6
208.9
10.2
196.3
6.9
2014 target
waste per vehicle
218.5
2.8
219.9
1.7
2014 target
waste per vehicle
187.2
(-6% vs 2009) hazardous waste per vehicle
185.7
(-15% vs 2010) maintain hazardous waste per vehicle at 2010 levels
221.7
191.5
198.7
189.4
215.7
218.2
6.8
(-10% vs 2009)
2008
2009
2010
2011
2010
hazardous
2011
non hazardous
Data includes Chrysler Group for the full year. (2) Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. (3) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (4) When indicated Chrysler the scope includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations.
(1)
123
produced of 39.3% (from 2.8 to 1.7 kg/vehicle produced). In 2011, Fiat Group Automobiles worldwide dramatically reduced the percentage of waste sent to landfill to levels as low as 0.2% (against the Fiat Group average of 29.5%) and increased the recovery rate to 95.3% (against the Fiat Group average of 67.2%). Chrysler also reduced the percentage of waste sent to landfill reaching 3.1%, and increased the recovery rate to 95.9%. With reference to the Basel Convention, 105 tons of hazardous waste were exported from Canada to the US for recycling (purge solvent), representing 2% of all hazardous waste generated by Chrysler Group. For further details see page 239.
Waste recovery rate
Fiat Group Automobiles worldwide Chrysler(1) worldwide
94.9%
95.9%
2008
2009
2010
2011
2010
2011
4.5%
4.4%
4.4%
4.4% 3.1%
2014 target
maintain 2010 levels
0.2%
2014 target 0%
2008
2009
2010
2011
2010
2011
(1)
When indicated Chrysler the scope includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations.
124
Environmental dimension
External noise
In 2011, Fiat Group completed the mapping of areas where it is most important to cap the level of external noise produced by factories, based on the potential negative impact for the local area. The company subsequently defined guidelines for designing/purchasing new machinery and equipment and constructing buildings with reduced noise levels. These guidelines reference legislation and Italian technical standards, with the latter placing particular emphasis on preventing issues caused by noise emitted into the external environment. Their adoption guarantees the progressive reduction of noise levels currently set by the plants, even if already well within the limits established by local regulations.
125
Biodiversity conservation
Biodiversity is an important global issue and Fiat Group is aware that each species, no matter how small, plays an essential role. Accordingly, the Group strives to preserve the variety of life forms on earth and biological diversity through sustainable development strategies. During 2010 declared the International Year of Biodiversity by the United Nations General Assembly the Group, in association with the Department of Life Sciences and Systems Biology at the University of Turin, defined a specific Fiat Biodiversity Value Index as well as guidelines for its application across the company. The index measures the level of biodiversity and influencing factors for areas surrounding plants in order to identify, and give the proper priority to, any interventions that should be carried out to protect and/or restore the local environment. The methodology has led to the definition of two parameters. The first reflects the level of biodiversity found in the surrounding area that is measured through the analysis and assessment of specific indicators characteristic of aquatic and terrestrial ecosystems, also taking into account protected species included in the relevant national and/or international lists (e.g., International Union for Conservation of Nature (IUCN) Red List and Directive 2009/147/EC concerning conservation of wild birds). The second parameter measures the level of environmental pressure based on human activity in the area (agriculture, industry, urban expansion, etc.). Already applied at two Italian pilot locations (the Fiat Powertrain plant in Verrone and the Magneti Marelli plant in Venaria), this methodology was extended to the Fiat Group Automobiles Serbian plant in Kragujevac in 2011. In addition, preliminary activities for the application of the methodology at the Teksid site in Funfrap, Portugal, were initiated. The assessment in Serbia was conducted within the scope of the recovery and redevelopment of the plant. Although that site is not adjacent to either a protected area or an area of great biodiversity, the study made it possible to implement a series of interventions aimed at protecting the parts of the
environment that are in the most critical conditions. In 2011, the initiatives implemented at the Verrone and Venaria sites in Italy were also assessed in order to define a new action plan, and the Group guidelines were applied to all adjacent sites or sites located in protected areas or areas with great biodiversity. Furthermore, a pre-assessment analysis for identifying the sites where the Fiat Biodiversity Value Index should be applied was integrated into the methodology. Sharing the objective of protecting the environment, Chrysler Group implemented targeted actions at the Toluca (Mexico) assembly and stamping sites, situated in an area 13 kilometers from the Cinegas de Lerma wetland. During significant rain events, treated wastewater, normally used for irrigation, is sent to the Lerma River, replenishing the wetlands.
Environmental dimension
The Fiat Biodiversity Value Index represents a breakthrough in methods for assessing the condition of the environment and mans impact on it. For the first time, a major industrial group has adopted an innovative methodology that addresses the issue of biodiversity from a holistic view, seeking to intervene by employing complete and scientifically proven knowledge. The model proposed by Fiat may undoubtedly be considered an exemplary approach to responsible sustainability.
126
Environmental dimension
Type of activity
Production of transmissions and parts
IUCN Red List species and national conservation list species present
40 species listed: 0 Critically endangered 2 Endangered 2 Vulnerable 1 Near Threatened 35 Least Concern
Production of lighting and exhaust systems Production of engine blocks, exhaust manifolds, differentials and carter turbines Assembly and stamping operations
246,390
103,960
n.a.
817,000
27 species listed: 1 Critically Endangered 2 Endangered 2 Vulnerable 1 Near Threatened 21 Least Concern
n.a.
(1) A protected area (national, regional, site of community importance, special protection zone, oasis, etc.) is a geographically dened area that is designated, regulated or managed to achieve specic conservation objectives. An area of high biodiversity value is an area that is not subject to legal protection, but is recognized by a number of governmental and non-governmental organizations as having signicant biodiversity.
127
Environmental dimension
128
Environmental dimension
Energy consumption
Today climate change is no longer a scientific curiosity: it is widely recognized as the principal environmental issue facing the world. Fiat Group recognizes the dual roles played by large industrial enterprises: on one side contributing to global energy demand, and on the other, joining in the fight against climate change and global warming. Addressing climate change has been at the core of the companys environmental policies for many years, and the Group is committed to reducing the use of fossil fuels and the emission of greenhouse gases through smarter energy consumption and employment of renewable energies. This commitment is embodied by the World Class Manufacturing program (see also page 114-115) that, starting from 2010, provides a sub-pillar dedicated to energy for improving the ability to identify and implement waste reduction measures and increase efficiency. The Group constantly strives to improve its Energy Management System (EMS), seeking to reduce the environmental impact of processes as well as the risks linked to increases in energy costs and compliance with new regulations. The new Energy Management System was introduced in 2010 in order to ensure standardized and efficient procedures for energy management and constant alignment with international best practice and regulations. It was adopted by 40 plants in 2011, representing 70% of the Groups total energy consumption (excluding Chrysler Group). Following the introduction of the international Energy Management System standard ISO 50001 in mid-2011 (a similar standard to the EN 16001 standard already in place), the Group began the certification procedure. In addition to the 11 plants that had already achieved EN 16001, in 2011 six Group plants obtained ISO 50001 certification: two Italian Fiat Group Automobiles (FGA) plants in Mirafiori and Melfi, one Italian Maserati plant in Modena, one Brazilian Comau plant, one Italian Fiat Powertrain plant in Verrone and one Italian Magneti Marelli plant in Sulmona. The combined total of these certified plants represents approximately 11% of Fiat Groups total energy consumption excluding Chrysler Group. By 2014
the main plants, which together represent approximately 92% of Fiat Groups total consumption, will adopt the new EMS and undergo ISO 50001 certification. Throughout 2011 the initiatives designed for keeping the commitments made under the Energy Action Plan also proceeded. The plan calls for up to a 26% reduction in energy consumption and up to a 30% reduction in CO2 emissions per unit compared with 2009 levels by 2014, with a specific target for each sector. For more information, please see the sustainability section of www.fiatspa.com. The principal technological and process solutions adopted during the year to reduce energy consumption included: high-efficiency motors, electric motor inverters (Magneti Marelli and Chrysler Group) high-efficiency lighting systems (LED or traditional technology) for production facilities, offices and external areas, combined with light intensity regulators and remote controls (Fiat Group Automobiles, Comau and Chrysler Group) frequency control and smart stand-by systems for equipment
129
free-cooling systems increasing the number of cooling towers and reducing the use of electric air-conditioners (Chrysler Group) elimination of compressed air leaks (Fiat Group Automobiles and Chrysler Group) or installation of variable speed air compressors
Direct and indirect energy consumption
Fiat Group worldwide (TJ)
high-efficiency furnace melting (Teksid) interventions for optimizing the functions of the heat management system, air-conditioning systems (FGA, Chrysler Group, Fiat Powertrain, Magneti Marelli) and for scheduling system start times in the most efficient manner thermal isolation of facilities
2011(1)
Plants 150
2010 (2)
148
2009 (3)
113
Electricity Natural gas Other fuels Other energy sources Total energy consumption
In 2011, the total annual energy consumption was approximately 48,250 terajoules, with a decrease in absolute values over the previous year of approximately 2% mainly driven by optimization of production processes. In terms of energy consumption per unit produced, Fiat Group Automobiles (FGA) continued its path of constant improvement in energy efficiency, and by year-end achieved an average value of 4.98 GJ/vehicle produced for a 3.3% reduction over 2010 and a 6.9% reduction over 2009. These results, which may be attributed to the introduction of innovative technological solutions and the implementation of focused organizational measures, are particularly meaningful
Direct and indirect energy consumption
Fiat Group Automobiles worldwide (GJ per vehicle produced)
because they were achieved despite underutilization of plant operating capacity. With respect to Chrysler, the significant increase in plant capacity utilization together with energy efficiency initiatives resulted in a decrease in consumption of 16.8% compared with 2010 at Chrysler plants worldwide, reaching an average value of 8.82 GJ/vehicle produced. The other sectors also achieved exceptional performance. Teksid and Comau, for example, exceeded their scheduled objectives and selected mid-term targets were revised upwards towards even greater improvement. For further details see pages 242-244.
Chrysler(4) worldwide (GJ per vehicle produced)
2008
(1)
2009
2010
2011
2010
2011
Data includes Chrysler Group for the full year. (2) Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. (3) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (4) When indicated Chrysler the scope includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations.
Environmental dimension
130
Environmental dimension
CO2 emissions
In 2011, due primarily to a reduction in energy consumption, Group CO2 emissions(1) decreased 4.6% compared with 2010, resulting in a total of 4.1 million tons. The Group continued using renewable energy sources that in 2011 represented 19.3% of the Groups energy utilized, excluding Chrysler Group, and 9.8% of energy, Chrysler Group included. In Europe, the vast majority of renewable energy purchased by
Direct and indirect CO2 emissions
Fiat Group worldwide (thousands of tons of CO2)
the Group are RECS (Renewable Energy Certificate System) certified, while the renewables purchased in Latin America are certified as being generated by hydroelectric sources. For 2012, the Group has committed to maintaining the level achieved. Chrysler Group will instead evaluate the use of renewable energies to satisfy its energy requirements based on the more economically viable opportunities that the US market may offer in the future. For further details see page 242.
2011(2)
Plants 150
2010 (3)
148
2009 (4)
113
With regard to CO2 emissions per unit produced, in 2011 Fiat Group Automobiles (FGA) released an average of 0.375 tons of CO2 per vehicle, a reduction of approximately 10.3% over 2010 and 20.2% over 2009. This performance is mainly due to an increase in the use of renewable energy (16.2% of total energy consumption) and improvement in energy efficiency. Chrysler also improved its performance: in 2011, CO2 emissions were reduced by 16.7% over 2010 for an average of 0.731 tons of CO2 per vehicle.
Direct and indirect CO2 emissions
Fiat Group Automobiles worldwide (tons of CO2 per vehicle produced) Chrysler(5) worldwide (tons of CO2 per vehicle produced)
2008
(1)
2009
2010
2011
2010
2011
Emissions of greenhouse gases (GHGs) other than CO2 have a negligible impact and therefore are not included (CO2 accounts for over 99% of the Groups total GHG emissions). The Group reports CO2 emissions according to the standards and guidance outlined in the GHG Protocol and, for the calculation of indirect emissions, using the emissions factors published by the International Energy Agency in November 2011 and other regionally published factors such as the eGRID in the US. (2) Includes Chrysler Group data for the full year. (3) Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. (4) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (5) When indicated Chrysler the scope includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations.
131
Much of the energy used at Group plants comes from third-party power generation plants with 40% produced by company power plants. At year-end 2011, the Group only had two directly owned power generation plants that qualified for the European emissions trading system (EU-ETS). These were located at the Italian manufacturing sites of Fiat Powertrain in Pratola Serra (Avellino) and Magneti Marelli in Modugno (Bari). Energy generated at these two sites in 2011 totaled approximately 412,000 GJ representing 1% of total Group energy consumption. CO2 emissions allocated to these generation plants for the period 20082012 (EU-ETS 2nd phase) has to date resulted in an overall credit (approx. 18,000 tons of CO2 verified against around 34,000 tons allocated). Additionally, in 2011 Group companies located in the UK registered under the CRC Energy Efficiency Scheme (the UK emissions trading system applied to energy consumers) completed the Evidence pack.
Environmental dimension
132
Environmental dimension
Logistics
Logistics is the integrated management of all activities required to move materials, components and products along the supply chain, from suppliers to manufacturing sites and out to the sales network. The main objective of logistics managers is to coordinate these activities in a way that meets corporate and customer requirements, striving to maximize efficiency and reduce the impact of transport on the environment. For Fiat Group, the efficiency and environmental sustainability of logistics processes are key factors in creating value. Together with minimizing costs and optimizing freight flows, the Groups efforts are centered on reducing environmental impact by cutting logistics-related emissions and minimizing the use of non-reusable packaging.
133
Organization
Reflecting the important role that it plays in ensuring continuous improvement in both the production system and the supply chain, the World Class Manufacturing program includes logistics as one of its technical pillars. The focus of World Class Logistics is the definition of integrated logistics processes at plants and in planning for the supplier network, in order to meet the requirements of safety, ergonomics, eco-compatibility and transport flow optimization. Fiats Logistics Engineering unit and Chrysler Groups Logistics department connect manufacturing with the logistics function. In 2011, they continued their work as the centralized organizations with group-wide responsibility for setting guidelines and standards. Through the re-engineering of material flows and the application of Just-in-Time methodology, processes have been improved by eliminating stock and reducing material handling, delivering only what is needed, where it is needed, at the right time. At Chrysler Group, the Supply Chain Management team oversees the entire supply chain through upstream demand planning; production scheduling and capacity management; supplier delivery risk management; as well as transportation planning, purchasing and cost control. Chrysler Groups worldwide logistics operations are managed centrally, allowing the company to choose the most effective mode, equipment and route for a given supply chain requirement. At the end of 2011, Chrysler Group logistics specialists joined the Fiat Group Logistics Sustainability Team whose objective is to promote the dissemination of environmentally friendly practices throughout the company. In January 2011, Chrysler Group became a SmartWay partner with the US Environmental Protection Agency (EPA). The SmartWay Partnership is a collaboration between the EPA and the freight industry that helps companies reduce their transportation supply chain carbon footprint through the implementation of innovative approaches. Starting in September 2011, all Chrysler Groups US inbound parts and materials carriers were SmartWay Partners and it is now a requirement for carriers
Logistics ows
Inbound transport of components and materials to Group plants is handled either by external transport providers engaged by the company or managed directly by the material suppliers themselves. Roughly one-quarter of Chrysler Groups inbound truck freight is handled by Chrysler Group Transport, Chryslers in-house automotive parts carrier. Outbound transport of finished goods to the sales network is either handled by external transport providers engaged by the company or by i-FAST Automotive Logistics S.r.l. (a Fiat Group company). For spare parts managed by Fiat Parts & Services and Mopar,(1) inbound transport (to warehouses and distribution centers) is either handled by external providers engaged by the company or managed directly by suppliers themselves. Outbound transport of spare parts to dealers is handled by external logistics operators that are not managed by the Group.
(1)
Environmental dimension
who do business with Chrysler Group. In addition, 70% of Chrysler Groups contracted carriers for finished vehicles are Smartway partnered, representing a 67% increase over 2010. In 2011, 98% of all miles travelled for Chrysler Group vehicle deliveries were done by Smartway carriers.
134
Environmental dimension
Environmental performance
A set of environmental KPIs for monitoring logistics processes was identified and adopted by Fiat Group Automobiles (FGA) in 2009, and extended to all Group sectors in 2011. In 2012, the environmental KPIs monitored will be broadened further and adopted also by Chrysler Group, adapted to specific US circumstances. The KPIs were defined on the basis of GRI-G3.1 guidelines and adapted to the specific characteristics of the various logistics processes. The KPIs are monitored to enable greater coverage and in-depth analysis of the impacts of distribution flows; in 2012, the results from this monitoring will be used to set additional improvement targets.
In total, CO2 emissions recorded in 2011 relating to logistics processes managed directly by FGA in Europe were reduced by around 4% compared with the previous year and by 9.5% compared with 2009. The improvement in FGAs environmental performance was driven by a series of projects and actions, ranging from the use of ecoefficient vehicles to the utilization of intermodal solutions and the optimization of transport capacity.
CO2 emissions in logistics processes
Fiat Group Automobiles Europe (thousands of tons of CO2)
135
For outbound Fiat Group Automobiles transport, 80% of the i-FAST fleet (which in 2011 managed around 25% of vehicle transport in Europe) already consists of Euro V vehicles, with the remaining 20% made up of Euro III vehicles. i-FAST has committed to purchasing Euro V vehicles for any fleet renewals and expansions. Overall, 81% of the entire fleet used for FGAs outbound transport in Europe is Euro III compliant or higher.
Sea
3%
Sea
21%
Road Road
83%
Rail
42%
14%
Rail
37%
Environmental dimension
In the US, Chrysler Group vehicles were co-loaded with the products of other automakers to optimize railcar density and minimize CO2 impact. The outbound network continues to reduce truck congestion by increasing the usage of environmentally friendly railcar alternatives. In 2011, road transport (42%) and rail transport (37%) were the main modes used for Fiat Group Automobiles (FGA) outbound transport in Europe. In 2012, the use of alternative transport modes for outbound transport will be extended in Italy with the introduction of new rail routes for the distribution of vehicles, replacing the road routes formerly used between Melfi and Turin, between Pomigliano and Turin/Arese/Verona, and between Atessa and Turin/Verona. In the US and Canada, Chrysler Group outbound transport is primarily by rail (75%) with the remaining 25% representing road transport. In 2011, the use of railways for FGA European inbound transport decreased slightly, mostly due to renovation work at the plant in Serbia, which resulted in production downtime (materials are delivered to the plant mainly by train via the Villanova-Kragujevac route).
136
Environmental dimension
Sea
9%
Road
Rail
82%
Road Rail
75% 25%
9%
number of suppliers in order to maximize utilization of transport capacity and increase efficiency, compared with transportation by suppliers shipping individually. The project, currently covering approximately 70% of volume shipped in Europe to Fiat Group Automobiles plants, continues to be expanded to other sectors. At Fiat Powertrain, for instance, the Streamlined Delivery Project covers 79% of the volume of material shipped in Europe. In 2011, the program reduced the total distance shipped by 4.9 million kilometers, decreasing CO2 emissions by 4,400 tons. In 2011, Chrysler Group reduced road miles and fuel consumption through high cube utilization on inbound deliveries. This action achieved 92% utilization on direct truckload deliveries, 100% utilization on rail deliveries and 97.6% utilization on inbound ocean deliveries. Moreover, through the inbound milk run approach, more than one million miles were eliminated in 2011, an 8% improvement. The milk run refers to a process whereby transport pickups are organized to optimize truck routes, ensure full truckloads and minimize the time required to make all supplier pickups in a specific geographical area. Although handled by external logistics operators, outbound shipments of service parts to dealers represent an additional opportunity to reduce CO2 emissions. Mopar strives to reduce the number of miles driven in order to realize benefits from both an environmental as well as cost-
137
savings perspective. In 2011, Mopar focused on reducing CO2 emissions by expanding an existing initiative which consists of sharing outbound dealer route services. Mopar freight is combined with other OEM or nonautomotive companies freight to be delivered to dealers on one consolidated route, sharing the cost of the equipment, driver, mileage and fuel among the participating shippers. Total miles driven were reduced by more than four million miles (6,586 tons CO2 emissions) resulting in a decrease of 30% compared with the planned miles for the year. Shared service routes are being used by 26% (832 dealers) of all Mopar North American dealers.
fluctuations in activity volumes. In 2011, efforts to optimize packaging in shipments were continued for the Kragujevac (Serbia) plant and begun for the Betim plant in Brazil. In Serbia, the use of wood crates was reduced by 78% compared with 2010, dropping from 4.5 to 1.0 kg/m3 shipped. Shipments to the Brazilian plant recorded a 21% reduction in the use of disposable wood packaging, from 15.6 in 2010 to 12.4 kg/m3 shipped in 2011. Fiat Group Automobiles Parts & Services, the FGA division that manages, sells and distributes parts, is also moving towards more environmentally sustainable solutions. In 2011, monitoring began of disposable materials used in Italy for the packaging and protection of parts. The objective is to introduce reusable containers starting in 2012, resulting in an expected 8% reduction in disposable packaging.
Packaging materials (cardboard)
Fiat Group Automobiles Europe (kg/vehicle produced)
2008
2009
2010
2011
Chrysler Group has also started projects to reduce packaging material. The packaging for the export of materials to international manufacturing locations (Venezuela and Egypt) is already comprised of 100% wood or corrugated material. In 2011, this resulted in a 9% reduction in packaging requirements and shipping costs. The company partners with service providers that are certified by the Sustainable Forestry Initiative (SFI). The SFI program integrates perpetual growing and harvesting of trees with protection of wildlife, plants, soil, water, and air quality. All of Chrysler Groups corrugated boxes contain at least 46% recycled fibers.
Environmental dimension
138
Environmental dimension
Non-manufacturing processes
The Groups commitment to reduce the environmental impact of its activities extends beyond its products and plants. Company efforts are growing in a number of areas including Information Technology activities and employee travel.
Employees travel
Commuting
Fiat Groups initiatives to improve employee commuting include optimization of travel routes as well as the promotion of the use of public transport and more sustainable means of transport such as bicycles. The easygo project, designed for the approximately 18,000 employees at the Mirafiori Italy complex (as well as around 4,000 daily visitors) was developed in collaboration with public institutions and public transportation companies. The principal elements of the project, whose development was based in part on employee feedback, relate to the following areas: public transport: reorganization of special lines, intensification and reallocation of scheduled services during specific time slots, introduction of new shuttle services prior to and following shifts carpooling: establishment of a web platform for employees to find co-workers interested in carpooling to and from work
easy cycling: installation of new parking spaces for bicycles and improvements to bike paths in and around the complex In addition, to improve the flow of traffic and safety conditions in and around the Mirafiori complex, traffic lights, lighting, pedestrian crossings and stopping/parking zones have been upgraded. Moreover, a dedicated internet portal was created through which Fiat employees can join the carpooling service and access information about public transportation and bike paths. A special email address was launched as well to allow employees to suggest areas of improvement and indicate service disruptions. The principal benefits expected from the project include not only the environmental impact, but also improved conditions for employees resulting from the decrease in commuting cost and time, the reduced risk of accidents, lower stress and, finally, more social interaction among co-workers. In 2011, it was estimated that an average 14,100 tons of CO2 were emitted as a consequence of employee commuting, equivalent to a reduction of 4% over 2010. In 2012, a detailed survey will measure the effectiveness of measures put into place on the basis of which new improvement targets can be set. Similar initiatives were implemented at the Italian Maserati plant for about 600 employees.
Business travel
In 2011, Fiat Group has started a pilot project to monitor CO2 emissions resulting from business travel by plane from Italy, the US and Canada (where about 111,000 employees work, 56.3% of the total workforce). In 2011, emissions from flights accounted for about 23,000 CO2 tons. To reduce business travel and associated environmental impacts, the use of audio/video conferencing and instant messaging systems was extended with the number of users reaching about 60,000 people. On average there were 24,000 voice calls per day and 142,000 instant messaging sessions per day. Moreover, in 2011 18 rooms equipped with high quality TelePresence videoconferencing systems were installed and employed for more than 300 hours per month. This initiative is estimated to deliver a reduction of approximately 10% in business travel.
139
Ofces
Green IT
In 2011, the Group continued its Green IT activities aimed at reducing energy consumption and associated CO2 emissions. For office systems, the program to replace hardware with equipment that has more efcient power supply systems continued, resulting in a reduction of around 250 tons of CO2 against 2009. The plan is expected to continue in 2012. In addition, approximately 9,950 monitors were replaced worldwide in 2011 with new EnergyStar and EPEAT Silver/ Gold-rated units with a reduction of 88 tons of CO2. Lastly, as part of the project to optimize printing systems, in 2011, a further 550 new, more energy-efcient, multi-functional printers were installed, saving 284 tons of CO2. In the Data Center area, which includes the computer systems that host applications and IT services, activities to reduce, replace, consolidate and virtualize servers continued, achieving a reduction of 7,200 tons of CO2 compared with 2010. More initiatives are planned in this area for 2012. Finally, Chrysler Group saved more than 1,600 tons of CO2 by automatically powering down PCs not in use in the evening.
The opportunity to evaluate, and ultimately improve, personal impact on the environment in the office and at home is also provided to employees at Chrysler Group through the How You Can Contribute module of the company online sustainability course, launched in 2011 and completed by 6,800 employees. By clicking on mygreenprint.org, workers find a wealth of practical information for promoting environmentally sound practices and choices.
Environmental dimension
iStockphoto.com/Pgiam
Never look down to test the ground before taking your next step; only he who keeps his eye fixed on the far horizon will find the right road
Dag Hammarskjld
Social dimension
Employees Product safety Dealer and service network Customers Suppliers Communities
Employees
Social dimension
143
Employees
Motivated and committed employees are crucial to the Groups success. Fiat Group strives to provide its employees with growth opportunities that continuously foster international collaboration and capitalize on diverse experiences, backgrounds and skills. Opportunities for career advancement offer employees the chance to contribute to company goals in a safe environment where the differences of all are respected and valued, and where teamwork and a can-do spirit are fundamental to worldwide success.
Workforce insights(1)
In 2011, the Group modified its global boundary following two important corporate events: the acquisition of majority ownership of Chrysler Group and the demerger of Fiat S.p.A. to Fiat Industrial S.p.A. During the year, the Group carried out industrial activities and financial services in the automotive sector through companies located in around 44 countries and sold its products or services to customers in approximately 140 countries. As of 31 December 2011, the Group had 197,021 employees,
Employees by region
Fiat Group worldwide
a 4% increase over year-end 2010. (2) Analysis of the regional distribution reveals that 43.7% of employees were located in Europe, with Italy and Poland representing the majority at 31.8% and 5.7% respectively. Latin America represented 28.8% of employees, with the largest number in Brazil. Lastly, North America accounted for 24.5% of the Group workforce. The sector with the largest number of employees was Fiat Group Automobiles, which accounted for 30.3% of the Groups total workforce, followed by Chrysler Group with 28.3%. For further details see page 246.
Employees by category
Fiat Group worldwide
Employees by sector
Fiat Group worldwide
Europe
North America
Chrysler Group
Hourly
43.7%
24.5%
30.3%
Ferrari
28.3%
70.4%
Salaried
1.4%
Maserati
14.9%
0.4%
Latin America Professional Magneti Marelli Other businesses(3)
13.6%
28.8%
Asia Rest of world
17.6%
Comau
4.3%
Teksid 4.0% Manager Fiat Powertrain 6.4%
2.9%
(1)
0.1%
7.3%
1.1%
Unless otherwise specied, workforce data is calculated as at year-end. To ensure that information is comparable and meaningful over time, data for 2010 has been restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. (3) Other businesses include holding companies and companies operating in publishing, communications and services and other companies.
(2)
Social dimension
144
Social dimension
Employees
Total(3)
(including Chrysler Group)
2011 Europe North America Latin America Asia Rest of world Total
Total
2010 Europe 87,833 87,941 North America 1,690 45,056 Latin America 43,387 51,286 5,000 Asia 4,758 141 Rest of world 133 Total 137,801 189,424
Worldwide, the highest concentration of Group employees is in the 41 to 50 age group, and approximately 37% of the workforce has been employed for five years or less. There was a global increase in the number of employees in the 30 and under category as well as in the over-50 category compared with 2010, and a corresponding drop in the number of employees in the 31 to 40 age group. No differences were registered between genders. To respond to aging trends observed in the working population, the company develops specific initiatives. One example is the effort to support plant
employees by providing suitable workstations designed to take into consideration factors such as age, gender and anthropometric characteristics (see also pages 177-178). With respect to education level, there was a slight increase for both men and women having higher levels of education, with approximately 16% of employees holding a university degree or equivalent qualification. Roughly 37% had completed high school. The number of employees having only completed elementary/middle school rose to 23%. For further details see page 247.
(1) Employees are divided into four main categories: hourly, salaried, professional and manager. Professional encompasses all individuals who perform specialized and managerial roles (including professional and professional expert under the Fiat S.p.A. classication system and mid-level professional and senior professional under the Chrysler Group classication). Manager refers to individuals in senior management roles (including those identied as professional masters, professional seniors and executives under the Fiat S.p.A. classication system, and senior managers and above under the Chrysler Group classication). (2) Data restated to exclude companies demerged into Fiat Industrial S.p.A., it does not include Chrysler Group. (3) Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
145
Employees by age
Fiat Group worldwide
Over 50 years
Up to 30 years
20.9%
19.6%
41 to 50 years
31 to 40 years
30.6%
28.9%
Although Fiat Group has not established a formal policy to guarantee hiring of nationals or favor individuals from communities in its areas of operation, when possible preference is given to local residents. This ensures a stronger tie between the business and the community, enabling a better understanding of local needs and the development of local human capital. In 2011, the Group conducted an analysis on 99.9% of Group managers in 21 different countries which showed a significant percentage of managers of local nationality in each of the Groups main regions of operation: approximately 97% in Europe, 95% in North America and 83% in Latin America.
Managers of local nationality by region
Fiat Group worldwide (%)
Over 30 years
Up to 5 years
6.8%
21 to 30 years
36.7%
16.2%
11 to 20 years
6 to 10 years
29.5%
10.8%
Social dimension University degree or equivalent(2)
Not tracked(1)
23.7%
16.2%
High school
23.2%
36.9%
(1) (2)
Cases for which it is not possible to report level of education as the data is not always tracked in Group information systems, particularly with reference to hourly employees. Calculation subject to approximation resulting from the comparison of academic qualications among different countries.
146
Social dimension
Employees
In 2011, approximately 96% of Group employees were covered by an unlimited-term employment contract and about 98.7% were employed full time. Fixed-term contracts were kept to a minimum; the use of this type of contract was distributed over the regions ranging from a minimum of 0.6% (Asia) to a maximum of 4.5% (Latin America) of all contracts. In 2011, despite the current global economic situation, 5,743 temporary contracts were converted into unlimited-term contracts. A total of 1.3% of the Group workforce is employed part-time (of which 62% are women).
95
96
2010(1)
Unlimited-term
2011
Fixed-term
Unlimited-term
Fixed-term
Part-time Full-time
2011 Europe North America Latin America Asia Rest of world Total
Total
Part-time
Full-time
1,078 4 4 1,086
55 1,456 1,511
Turnover
A total of approximately 21,800 new employees were hired worldwide in 2011, 61.6% of whom were recruited in Latin America. Among newly-hired employees, 11.4% were recent graduates, demonstrating the Groups commitment to investing in the workforce of tomorrow. About 30.2% of the new hires were employed under fixed-term contracts (35.6% in 2010). Changes in the scope of operations resulted in a net increase of around 56,700 employees. The increase was mainly due to the consolidation of Chrysler Group employees into Fiat Group (55,687 by year-end). During 2011, about 19,300 people left the Group. For further details see pages 247-249. Around 3.6% of departures were the result of collective redundancies from the reorganization or rationalization of operations mainly in Italy, including some initiatives launched the previous year. Wherever possible, these situations were managed through the use of social welfare mechanisms provided for by law and with the establishment, in collaboration with trade unions, of social
(1)
plans aimed at minimizing impacts on employees. Fiat Groups size also provided opportunities for about 3,700 transfers between sectors and countries. To foster crosssector and intercompany transfers, an internal job-posting program will be implemented in 2012 in each region in addition to Chrysler Groups internal job-posting program that has been in place for more than 20 years. In 2011, the program offered 326 open positions and received about 3,200 internal applications from salaried employees in the US and Canada.
Employee turnover(2)
Fiat Group worldwide
Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. (2) Chrysler Group was consolidated in the workforce scope starting in June 2011; turnover includes Chrysler Group New Hires and Departures exclusively for the second half of 2011.
147
through defined criteria. The final results are discussed in a meeting between the manager and the employee, during which an open dialogue on areas identified for improvement contributes toward validating the employees performance and strengthening the bond with the organization. Upon completion of the process, employees can access their evaluation online, insert details on their professional aspirations and request specific training to address identified areas of improvement through a variety of actions (such as coaching, exposure to senior management, etc.). This unique skills mapping and appraisal process, which is the basis for variable compensation,(1) is supported by information systems that enable managers to constantly access up-to-date information of the people within his/ her organizational unit as well as those even indirectly in their reporting line. In this way, the individual performance
The Performance and Leadership Management process is the basis for the individual contribution element for manager and professional employees variable compensation.
Social dimension
148
Social dimension
Employees
of each employee is accessible and can be examined by upper management within the organizational structure. During 2011, performance and leadership mapping was extended to Chrysler Group eligible employees and carried out in its entirety for around 39,500 Group employees, including all managers and professionals, and a portion of salaried employees. For further details see page 247. The number of salaried employees evaluated has increased on a yearly basis, from 25% in 2010(1) to 36% in 2011.(2) The target for 2012 is to continue this upward trend in the number of salaried employees evaluated, contingent on both market and organizational developments. Six full days spent by Fiat S.p.A.s CEO in analyzing the results of the PLM process, with particular emphasis on senior managers, testifies to his firm belief that an organizations success is based on its resources. This analysis led to concrete measures in terms of the career development of individual employees and, combined with the evolution of the business, brought on significant organizational changes. Therefore, it is clear that the PLM process serves not only as the basis for all personnel-related management decisions but is also a fundamental element specifically in talent management and succession planning, which has effectively resulted in key positions being filled largely by internal candidates.
(1) (2)
Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. Data includes Chrysler Group for the full year.
149
Group employees, across 25 professional families/sectors/ functions. The program focuses on ensuring that all key leaders are developing both a short- and long-term succession plan. Through this process, attention is focused on less experienced talented individuals who are not yet widely known within the organization, but who merit investment as potential leaders for the future. Through the dedicated Talent Review Committee web platform, beginning in 2011 senior managers can view the profiles of both the emerging talents and senior managers identified in succession plans. The CEO of Fiat S.p.A., together with the heads of each sector and the various central corporate functions, dedicated three full days to talent management. Various issues were addressed including the assignment of key roles, the analysis of talents and initiatives to support their development and international/ cross-functional career plans. Through guidance and a broader range of career development opportunities, employees can optimize their performance, reach above and beyond expectations, and participate in highly effective work teams. In 2012, a Long Term Incentive Plan, aligned with best market practice, will be available to ensure the involvement and retention of individuals who are the key to the Groups continued development.
Social dimension
150
Social dimension
Employees
political circumstances and, therefore, do not allow for cross-border comparisons. In order to evaluate the adequacy of entry-level salaries in each country, in 2011 the Group expanded the scope of monitored countries from 18 to 30. The results show that in all countries monitored,(1) entry-level salaries(2) are at least equal to, if not higher than, the statutory minimum or applicable non-company collective labor agreement. Workplace equality within the Group is also shown in the comparison between minimum entry-level wages by gender. Considering a survey sample of 17 countries accounting for approximately 97% of the worldwide company workforce, wage levels were found to be identical between men and women.
The survey covered 99% of the total Group workforce. In accordance with the GRI-G3.1 guidelines, entry-level salary is dened as the minimum compensation paid to a full-time employee hired at the lowest pay scale/ employee grade on the basis of company policy or agreements between the company and trade unions. For each country, results are based on the company with the lowest ratio of entry-level salary to minimum wage. Figures reported are at 31 October 2011.
(2)
(1)
151
231 215
141 125 100 100 100 100 100 100 100 100 110 110 127
144
150
Belgium
Czech Republic
United States
United Kingdom
Germany
Argentina
Romania
Canada
Italy
France
China
Mexico
Austria
Poland
Turkey
Spain
Brazil
Financial benets % of employees entitled to benet 60.2 Pension plans 86.8 Company-provided health plans 57.0 Life insurance 56.4 Financial support for disability/invalidity 60.0 Employee cafeteria or lunch vouchers 40.0 Others(2) Social benets Child care services(3) Wellness and nutrition programs(4) Gym/tness services(5)
(1)
The comparison shows data for 17 of the 30 countries mapped, representing approximately 97% of the Group workforce. Includes benets such as company cars, housing, interest free loans. Includes kindergarten, free gymnasium access for children, assistance with homework, summer camps/holidays, other services dedicated to child care. (4) Includes nutrition coaching, smoking cessation training, medical check-ups, medical screening, other wellness programs. (5) Includes free gymnasium access, gym/tness courses and other sports initiatives.
(2) (3)
Social dimension
152
Social dimension
Employees
Child care services are also in place at some locations to help employees achieve work-life effectiveness by responding to their needs (see also pages 168-169, 171). The Group also promotes a healthy lifestyle through comprehensive wellness programs and facilitates access to dedicated sports facilities (see also pages 169-170, 179-183).
Training
A skilled, knowledgeable and motivated workforce is essential to the success of any enterprise. Fiat Groups intangible assets are strengthened thanks to its employees, who continually strive to achieve their personal best. To support this goal, the company offers a wide range of training programs that build employees individual skills and spread the Groups strategy and values. To ensure a uniform approach throughout the Group, the Fiat HR Training Committee and the Chrysler Group HR Talent Management Team manage training at the corporate level, while sector training managers focus on developing programs tailored to specic training needs, consistent with the indications established at the Group level. Periodic meetings, dedicated web portals, virtual classrooms and cooperative learning sessions are among the tools used by training managers to share best practice, coordinate formal knowledge networks and promote synergies with respect to standards, methods and training objectives. Dedicated web portals offer teaching materials and feature examples of successful programs. SEPIN Training, the Fiat center of reference for learning, supports the Group in capitalizing on its knowledge in automotive core methods (Research and Development, Manufacturing), learning methodologies, innovation and funding. In 2011, the Group training process focused on four pillars: support for the development of automotive industry know-how development of the managerial skills of employees assigned new responsibilities alignment of professional skills with strategic, organizational and technological changes updating of employees on corporate rules, values and commitments to stakeholders
The findings show that 60% of employees are eligible for a pension plan, and of these, during 2011 approximately 70% joined this type of plan. This figure represents 40% of the total population mapped. Supplementary pension plans provided by the Group fall into two categories: defined contribution pension plans, for which contributions (by employees, the company or both) are defined at the outset, and benefits depend on the total sums allocated to the fund supporting the plan and the financial returns of the fund itself defined benefit pension plans, in which the future benefits paid out to employees are defined at the outset, and contributions may vary over time to guarantee payment of the pre-defined benefits Most existing pension plans at Group companies are defined contribution plans. Company-provided health plans are also available for Fiat Group employees, and about 80% of the surveyed population was found to have joined such a plan (see also pages 181-183).
153
Since the end of 2011, online courses are provided through a new e-learning platform that delivers a more interactive learning experience for employees. Throughout 2012, new learning management functions will provide training specialists with greater ability to monitor processes. In 2011, the Group increased investment in training by 22.8% compared with the previous year, reaching a total of 80.3 million for the year. Over four million training hours were provided (+26.7% vs 2010) to about 139,000 employees (+5.3% over 2010), of whom nearly 115,000 were men (83%) and 24,000 were women (17%). Of the total employees benefiting from training activities, 63% were hourly employees, 35% were professionals and salaried employees and 2% were managers. Each individual received an average of approximately 20.5 hours of training. Specifically, hourly employees averaged 16.0 hours, professionals and salaried employees averaged 31.3 hours and managers averaged 26.8 hours. During 2011, men and women took part in an average of 20.5 and 20.9 training hours respectively.(1) Most corporate campaigns were delivered online, allowing individuals to pursue training when most convenient
Training expenditure and activities
Fiat Group worldwide
for them and minimizing the disruption of their business responsibilities by allowing them to remain at work. Investment in classroom, online and on-the-job training focused primarily on the development of job-specific know-how (66%), managerial skills (16%), language skills (10%), corporate campaigns, rules and commitments (3%) and other topics (5%). Corporate initiatives and on-the-job training sessions are designed to continuously channel information to employees and keep them constantly up to date on health, safety and environmental issues. In 2011, about 700,000 training hours were delivered on health and safety topics. Approximately 106,800 hours of training were also delivered on environmental issues (see also pages 116, 176). The Group promotes the dissemination of the principles described in the Fiat S.p.A. Code of Conduct, in particular with reference to good governance practice, respect for human rights, non-discrimination and sustainability, to all employees regardless of their level or role, including security personnel, through regular dedicated courses and other information channels. In 2011, about 41,800 employees were trained on these issues.
Averages calculated based on the total workforce and not exclusively on the scope of employees enrolled in training courses. Personnel costs totaled 7,629 million in 2011 and 7,687 million in 2010 (Chrysler Group data included for 2011 and 2010 calendar years: average annual exchange rates relative to years 2011 and 2010 applied). (3) Data includes Chrysler Group for the full year. (4) Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. (5) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (6) Relates to online courses and corporate/sector programs on corporate governance, anti-corruption, human rights and non-discrimination. The signicant increase is mainly due to the delivery in Italy of the online corporate campaign on non-discrimination (professionals) and to the delivery of sector initiatives (Fiat Group Automobiles, Magneti Marelli and Chrysler Group) on corporate governance and human rights.
(2)
(1)
Social dimension
Spending on training ( million) Percentage of personnel costs (2) Hours of training provided (thousand) Employees involved (thousand)
154
Social dimension
Employees
In particular, during the year, the company continued training courses and campaigns promoting good governance, sustainability and anti-corruption principles, involving roughly 23,000 employees, in addition to the Group managers that, between 2009 and 2010, were already attended training centered on the same topics. More than 6,200 professionals in Italy completed the course on non-discrimination, aimed at preventing discrimination in the workplace (ILO Convention 111) and promoting a culture where all employees feel respected and valued, in addition to the managers that already attended the course worldwide in 2010. By the end of 2012 the course will be extended to all professionals globally. Similarly, at Chrysler Group a web-based training program called R.E.S.P.E.C.T. (1) was rolled out during the year to about 10,300 US salaried employees (18.5% of the total Chrysler Group workforce). This training is designed to foster a workplace environment free of harassment and discrimination. Security personnel are also trained on this issue. In 2011, approximately 900 security guards (both those employed by Fiat Group directly and by external contractors)(2) attended such courses.
(1) R.E.S.P.E.C.T. stands for Recognize and report inappropriate behavior, Educate all employees, Set the right example, Provide equal opportunities, Eliminate harassment and discrimination, Commit to inclusion, Treat others respectfully. (2) The survey did not cover the entire security personnel population. Excluded were security personnel employed directly or outsourced for Comau worldwide (only Italy included), Teksid worldwide (only Italy and Brazil included), Chrysler Group worldwide (only Canada and Mexico included).
155
To raise awareness and knowledge of the ecological, safety and technological features of Groups products, training programs illustrating new environmental, safety and technological features continued to be provided in 2011. Training activities are monitored and measured on an ongoing basis using a set of KPIs that was further expanded in 2011. The new learning management system will collect training data on a worldwide basis (number of hours, participation rate, spending, etc.), allowing analysis and comparison of KPIs across the Group. Employees will continue to access their updated training history. The effectiveness and efficiency of training programs
continue to be monitored and measured using a set of KPIs based on the Kirkpatrick scale. (1) Effectiveness generally is evaluated on the basis of three different components: participant satisfaction with the initiative (reaction), improvement in knowledge/ individual skills (learning) and, when relevant, applicability of concepts learned to the participants work process (behavior). To verify whether the desired outcome has been achieved, training efficiency is monitored through a comparison of both training hours by type and by category and expenditure levels against best-in-class competitors.
(1)
The Kirkpatrick model is a methodology for evaluating training consisting of different levels of measurement, applicable to any organization.
Social dimension
156
Social dimension
Employees
Internal communications
Internal publications, intranet portals, digital and printed newsletters, social media platforms, company message boards and web television are some of the many different tools and media providing a targeted and continuous flow of communication to foster a shared corporate culture and a sense of belonging among all Group employees. Through these different channels, employees are kept informed on key issues, strategies, results and events related to the company. Internal communications are coordinated centrally to ensure uniformity and promote group-wide synergies. The focus in 2011 was to intensify exchange between central and local functions to improve the spread of information and also gather data on local needs and expectations. A good example is Chrysler Groups monthly interactive web meetings, which ensure continual dialogue between the central and local teams. These involve the Internal Branding department (responsible for distributing information company-wide through Scoop to Go email distributions) and Communicators Network representatives, who circulate Scoop to Go information at the facility level throughout North America. In 2011, the Fiat company magazine illustratoat was redesigned to produce an all-new version, which was delivered to the homes of 130,000 active and retired employees in Italy. In its over 50-year history, the magazines mission has always been to inform and bring people together, instill a sense of pride and belonging among employees, and promote shared ideals and values. Serving a similar purpose is the centrally produced weekly newsletter called The Scoop of the Week, distributed to Chrysler Group employees at their individual facilities. This simple, yet highly effective, means of communication ensures that all employees, whether they work in company offices or plants, continue to be company and brand advocates. Through the intranet platform, every salaried employee also has continuous access to information on internal procedures, processes, policies and services, together with real-time updates on company events. Continuing last years momentum, the intranet site has become an
157
increasingly important communication channel, with enhanced interactivity and a growing number of people involved in internal marketing initiatives. The range of content and scope has been expanded to give employees access not only to corporate communications, but also to details about available initiatives and subscription to services currently accessible online. These included the atcares.com website launched in 2011 where employees can view information about professional and sports associations (Cedas, Ugaf, GDF, Ex Allievi Fiat, Sisport) and Italian employees can sign up for initiatives such as summer camps, scholarships and company events. Company websites also have sections dedicated to sustainability which provide publications, news and related content to promote a culture of responsibility and raise employee awareness about the Groups commitments and actions directed towards economic, environmental and social sustainability. In a similar vein, The Scoop, Chrysler Groups employee intranet news site is available to all employees from work and home. With over three million pageviews a year, it instantly brings all the latest company news, product reviews and auto industry information to employees worldwide. Lastly, as in previous years, the Group continued to boost efforts to improve management and accessibility of communication tools and channels. A fine example is Magneti Marellis internal television channel (MMTV) which, in addition to being available on demand to all salaried employees through intranet portals, has also been fully rolled out to all Italian plant cafeterias. A number of initiatives were launched through the MMTV channel in 2011, including an internal contest where groups of employees challenged each other by producing short videos as a creative celebration of MMTVs fifth year of broadcasting. The goal for 2012 is to start extending MMTV to plant cafeterias beyond Italy. In 2011, the internal TV channel Comau Channel Italia was also launched. TV monitors placed in various areas in the plants not only enabled the broadcast of information about the company, but also the dissemination of specific content on environmental and safety issues, with different messages based on the locations of the monitors and time slots. This
extremely flexible and effective tool allows the company to reach employees in real-time and is another important aid to communicating and engaging with employees. Continuous distribution of up-to-date information accessible to everyone is an essential part of the Groups commitment for the future. In 2012, the company will offer employees a media mix that will allow them, through different channels, to voice their opinions and needs, and keep up to date on key issues, strategies, results and events related to the company. Increasingly, use will also be made of internal social media platforms for business purposes. Going forward, two-way interactive communication will be at the heart of the Groups efforts.
Social dimension
158
Social dimension
Employees
employees, one that stands out in particular is Mio. This is a service that provides information on the work relationship including, for example, explanations relative to the new first-level collective labor agreement (CCSL) starting in January 2012, clarification on the information found on pay statements and help in joining social initiatives (see also page 185). Approximately 60,000 Italian salaried and hourly employees benefit from this service, which is available through different channels of communication: by phone, through the web and via roughly 60 help desks spread across the various plants and districts. In addition, in 2011 the employee events calendar at Magneti Marelli was enhanced: company conferences and Innovation and Technology meetings have been extended to a growing number of participants, becoming the perfect opportunity to communicate and exchange information
159
on company results and objectives. An initiative developed to aid access to information about special services provided by the company was also launched in 2011. ValYou provides employees the opportunity to take advantage of special offers and discounts arranged by the Group with various types of goods and services from major companies and brands. A constantly updated list of current offers and the description of the relevant conditions can be found in the ValYou website, available online to about 62,000 individuals. The company has responded to the need to balance work and private life through pilot programs for new services, particularly at the Mirafiori, Turin site. One example is Reti Amiche on the Job, created in association with the Ministry for Public Administration, the municipality of Turin and the Region of Piedmont. This service offers salaried and hourly employees a web portal dedicated to the preparation of administrative documentation, providing them with a time-saving alternative to having to visit the public administration offices in person. During 2011, this initiative covered approximately 13,000 employees of which 50% were hourly employees (see also page 168). Moreover, a service for renewing drivers licenses at the workplace was inaugurated in 2011. The welfare services offered to Italian hourly workers continued to be a useful tool for individuals in handling their personal concerns such as financial difficulties, family concerns, etc. Moreover, in 2011 summer camp programs were broadened, and enrollment fees were adjusted based on the number of children per family to lessen the financial burden on those with more than one child enrolled (see also page 171). In 2012, new and previously tested work-life balance initiatives and actions taken to foster communication will continue to be launched based on locally identified needs. Also, a new people satisfaction survey will be repeated to check effectiveness of the actions put in place and rapidly provide a subsequent overall picture of employee level of satisfaction.
Social dimension
160
Social dimension
Employees
Commitment to diversity
Culture is the fabric that holds organizations together. It is not just an ingredient for success; it is the essence of success itself. What will make all of this possible is the culture we are going to build with great teams based on mutual respect and openness. This is why my leadership team and I are committed to creating an atmosphere where all of our people feel respected and valued, because every person plays an important role in shaping our future, including employees, our supply base, our marketing and our dealer network. Sergio Marchionne
Fiat S.p.A. Chief Executive Ofcer
commitment to offer all employees equal opportunities in every aspect of the employment relationship, including recruitment, training, compensation, promotion, transfer and termination. The Group rejects all forms of discrimination, and in particular, discrimination based on race, gender, sexual orientation, social and personal position, physical and health conditions, disability, age, nationality, religion or personal beliefs. Enabling career opportunity and advancement that is free from discrimination, respecting and enhancing diversity are among the commitments highlighted in the Fiat S.p.A. Human Capital Management Guidelines and Human Rights Guidelines. At Chrysler Group, the Discrimination and Harassment Prevention Policy addresses these same objectives in compliance with federal, state and local laws. This policy covers all aspects of employment, including terms and conditions of hiring and recruitment. Due to Fiat Groups global presence, there may be significant differences in legislation among countries where the Group is present and also different levels of employee awareness, concern and capability in applying the principles of non-discrimination. The company Code of Conduct and specific guidelines ensure that the same
161
standards are applied worldwide. Company standards, as stated in the Code of Conduct, have precedence in jurisdictions where legislation is less stringent. In addition, the Group seeks to build awareness of the importance of a diverse and inclusive workforce through a variety of actions. Among other initiatives, in 2010 an online course focusing on the principles of non-discrimination was developed in cooperation with the International Training Center of the International Labour Organization (ILO) and provided to managers wordwide. In 2012 the course will be extended to all professionals with the purpose of teaching employees fair and unbiased behavior by providing practical
information, and giving concrete examples and suggestions on how to prevent, detect and correct conduct that may give rise to discrimination in the workplace. In order to encourage a culture of non-discrimination and foster diversity best practice, in North America the Chrysler Group Diversity Council was established more than a decade ago. The councils objective is to provide leadership for corporate initiatives and programs to ensure diversity throughout the entire enterprise. As a result of the councils commitment, in 2011, the Diversity Work Stream strategy was launched. This initiative engages teams of employees to develop and find new opportunities and creative solutions to fully leverage diversitys benefits for employees, business partners and customers. A total of 12 teams were formed, with over 150 employees participating company-wide. The Diversity Council will evaluate and prioritize the teams proposals for execution in 2012. Additionally, a pilot placement initiative to facilitate the integration of US veterans from the Army, Navy, Air Force and Marines into Chrysler Groups engineering departments was inaugurated. In 2012, the company intends to formalize and extend these types of initiatives. Chrysler Groups commitment to equal opportunities and diversity received several recognitions during 2011, including, for the fifth time, the Top 50 Companies for Diversity award from DiversityInc Magazine.
(1)
The policy has been transmitted to the following Group sectors: Fiat Group Automobiles, Comau, Magneti Marelli, Teksid, Fiat Services and holding companies.
Social dimension
162
Social dimension
Employees
Magneti Marelli (26.6%) combined with the Groups other businesses (which include holding companies and companies operating in the areas of publishing, communications and services), for which women made up nearly half of the workforce. For further details see pages 246-247. In 2011, Fiat Services S.p.A. in Italy participated in the project Companies that Invest in Women, an initiative launched by the Equal Opportunities Councilor of the Piedmont Region in collaboration with the Ministry of Labor, and was recognized as being among the most virtuous companies for having adopted systems for human resource management that included a significant number of women employees and managers.
Women employees by region
Fiat Group worldwide (%)
(1)
Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
163
2010(1)
Hourly Salaried Professional
2011
Manager
Compensation
A fair compensation strategy, in line with the principles of ILO Convention 100 on Equal Remuneration for Men and Women Workers for Work of Equal Value, and aimed at minimizing, if present, any gap between the genders, is part of the wider Group commitment to ensuring that the principle of equal opportunity for men and women is applied. Accordingly, since 2008 the Group has implemented a formal process to monitor application of the principle to compensation levels, annual salary review plans, performance and leadership appraisals and promotions. Monitoring results showed that in 2011 each of the analyzed processes followed the principles of equity and fairness. In particular, salary reviews continued to be based on consistent criteria which do not involve manager discretion in the selection of those receiving salary adjustments, thus removing possible gender bias. The specific criteria for adjustments focus on closing competitive gaps with respect to market position and giving priority to top performers, as defined through the formal performance and leadership appraisal process, in accordance with each markets needs throughout Fiat Group.
Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. The report is required under Article 46 of the Italian Legislative Decree 198 of 11 April 2006.
Social dimension
164
Social dimension
Employees
100
96.0 90.5 94.0 89.5
average compensation for men by category
Hourly
Salaried
Professional
Manager
Likewise, the promotion process followed criteria based on the weight of the position and the individuals demonstrated technical competencies and leadership skills, again assessed through the formal appraisal process. In this way, the Group applies objective criteria, removing subjectivity that may bias the selection of those being promoted. In October 2011, the Group extended the scope of the survey of compensation levels for men and women further to cover 12 countries (Argentina, Brazil, Canada, China, France, India, Italy, Mexico, Poland, Serbia, Spain and the US), which together account for approximately 95% of the Groups workforce. Overall, the analysis found a relatively small gap (between 4% and 10.5%) in average compensation for men and women (4% for hourly employees, 6% for professionals, 9.5% for salaried employees and 10.5% for managers). For managers, the average gap was wider, mainly as a consequence of the lower representation of women in senior management positions.
The table below reports the compensation gap for women compared to men (men = 100), broken down by category, for the three countries representing the largest portion of the Groups workforce (71%): Italy, Brazil and the US. The US results show that the manager ratio is the closest between men and women. In the case of Brazil, the mix of jobs held by women and men affect the ratios in the categories of hourly, salaried and professional and is not indicative of inequity in pay levels. In Italy, the average gap among managers is affected by the lower number of women employed in senior management positions.
Comparative compensation levels for men and women by country(1)
Fiat Group (men = 100)
Hourly
Salaried
Professional
Manager
US Brazil Italy
(1) Each category reported (manager, professional, salaried and hourly) includes a range of positions with compensation levels that may vary based on both internal and external factors (e.g., average salary level for a similar position in each country). The comparison is based on basic compensation, consisting of the pay received by employees for their normal activities, but does not include any supplemental allowances (including those paid under specic conditions or working hours), bonus payments, one-off payments or benets in kind. These gures do not include the Groups 21 senior managers (members of the Group Executive Council) and CEO. To ensure consistency of comparison, compensation gures were compared within the same country. Lastly, an average has been calculated for each employee category.
165
relation to the number of employees at the company/site and, in many cases, the obligation only relates to facilities where the size of the workforce exceeds a certain threshold. These laws also may give employers the alternative of paying contributions to specific funds for the disabled (i.e., Poland), or establishing agreements with the relevant bodies to hire these individuals gradually (i.e., Italy). In some of these countries, the economic difficulties experienced in recent years led to a widening of the scope of exemptions, such as in Italy where the company had to resort to extraordinary temporary lay-off benefits and collective redundancy schemes at numerous Group plants. In other countries, deadlines were postponed for paying contributions to specific funds (i.e., Germany, Spain) or for hiring disabled workers in cases where prior agreements had already been made for individual companies (Italy). The survey monitoring the employment of disabled workers within the Group was repeated in 2011(1) in order to evaluate the effectiveness of actions taken the previous year. In those countries where regulatory restrictions exist (14 of 32 mapped), disabled workers increased by 4.3% compared with 2010 and represented 3.1% of the Groups total number of employees (0.8% women and 2.3% men). This average value is the result of a variety of factors and was also influenced by local regulations that required minimum quotas ranging from 1.5% to 7%. In Venezuela, the Group registered
the highest percentage of disabled workers (5.2%). In many other countries (including Argentina, Australia, Belgium, Canada, Mexico, the UK and the US) there is no legislation related to minimum quotas for the employment of the disabled. In some cases, other methods of supporting integration may exist (i.e., related to working hours or workplace environment, particular grants/benefits for companies employing disabled workers, etc.). In these countries, employees and applicants are not legally required to disclose a disabled status and such information is often subject to data protection legislation. As a result, the company only becomes aware of an employees personal condition if he/she chooses to disclose such information. Lastly, the figures reported do not include workers who, although not disabled, may only be capable of certain specific tasks as determined through an assessment made by the medical staff or the relevant department, which takes into consideration both the workers health and the activities required in the individuals position. The company can offer these workers a position appropriate for their condition (e.g., workers who suffer from dermatitis are offered a job that does not put them into contact with substances to which they have a skin intolerance). Chrysler Groups Return to Work Specialists in US and Canadian plants provide a concrete example of how
(1)
Data refers to 31 October 2011: 32 countries (equal to approximately 73% of the Group workforce) were mapped.
Social dimension
166
Social dimension
Employees
the company handles employees whose work capacity has been impacted. These specialists actively pursue within legal and contractual obligations safe and productive work for affected employees including, if necessary, a role in a different capacity. For injured employees whose condition is such that employment with Chrysler Group is no longer feasible, the company works with the respective state or provincial governments to retrain the individuals so they may find work in other external occupations.
A first study relative to the distribution of nationality involved all Group companies, and the outcome revealed that 2% of employees have a nationality that is different from that of the country in which they work (of these, 26% are women). A second pilot survey which examined the ethnic origin (1) of employees based in the US (approx. 20% of the total Group workforce) found that 28% of the employees surveyed were reported to belong to an ethnic minority group. Of these 34% were women. The minority group with the largest representation was African Americans.
African American
22.4%
Hispanic Caucasian
2.7%
American Indian
71.9%
0.3%
Other
2.7%
To ensure that the commitment to diversity is not just a matter of statistics, Employee Resource Groups (ERG) have been established for several years in North America. Chrysler Groups ERGs (African American Network, Hispanic Network, Asian Network, Native American Network, Gay and Lesbian Alliance and Womens Forum) provide multicultural learning opportunities and career development avenues such as mentoring and networking for employees, as well as providing support for many community outreach initiatives and charitable events. Participation in ERG-sponsored events is encouraged and open to all Chrysler Group employees from all facilities with the aim of maximizing social and cultural exchange. Each ERG has an executive sponsor who is a member of the Diversity Council.
(1) The analysis was conducted with reference to the six ethnic origins with the greatest representation in the North American population (Caucasian, African American, American Indian, Asian, Hispanic, Pacic Islander).
167
Work-life balance
Achieving the optimum balance between work and private life is an essential element for employees to be effective, productive and satisfied in all dimensions of their lives. Fiat Group recognizes the shared challenge for both the company and its employees to improve this balance, while continuing to deliver excellence in job performance.
(1) (2)
The survey covered 96% of Group average workforce (JanuaryOctober 2011). Other types of leaves are those not related to childbirth or child care.
Social dimension
168
Social dimension
Employees
A pilot analysis conducted by the Group covering 95.5% of company employees focused on the percentage of employees who return to work after parental leave and are still employed 12 months after their return. The rate of women who returned to work in 2011 was approximately 48%, while for men the rate was 81%. One potential reason for the difference between genders may be explained by the fact that male employees generally took shorter leave than female employees, some of whom have not yet returned from leaves started in 2010. Also, in many of the countries analyzed, child care traditionally falls under the responsibility of women. Among those who returned to work, about 70% of women were still employed by the company 12 months later, while for men the percentage was approximately 90%.
child care, eldercare and summer camps. Additionally, employees can use self-search provider databases through the company portal, access links and articles and request free self-help books. For employees and their family members experiencing personal concerns, stress or conflicts, Chrysler Group also offers a free Life Services & Employee Assistance Program. Participation is voluntary and confidential, and provides the opportunity to discuss issues with an experienced professional counselor. Counselors may recommend face-to-face counseling meetings or offer referrals for assistance in areas of therapy, treatment programs, support groups or other community resources. To help employees in dealing with personal issues or family difficulties, in Italy, Fiat Group also has qualified on-site social advisors providing psychological counseling and advice to plant workers. The service, provided since 1941, has maintained its key feature of interpersonal support and has progressively adapted to the needs and demands of employees throughout the decades.
169
them to explore their artistic and creative abilities. Organized visits to educational farms give the children the opportunity to enjoy and explore. A range of other experiences is also provided outside the nursery for the children to get to know their local area and learn appropriate public behavior. In 2011, for example, visits to the Natural Science Museum and National Library of Turin were organized. The quality of child care and education offered by the Mirafiori Baby nursery is also accompanied by the companys commitment to providing a significant contribution to the costs of the service and keeping fees aligned with public nursery schools, at a cost linked to employee income.
170
Social dimension
Employees
and accessed over 500,000 times a year. Each center has a range of sports activities for different age groups and abilities, with coaching from qualified instructors. The centers have large areas dedicated to fitness (walking and running) and the latest trends in water sports (aquabike, aquapower and scuba diving), as well as tennis and rowing. Sisport is particularly committed to introducing children and young people from 3 to 16 years of age to the world of sports and, in partnership with certified sports instructors, offers a vast choice of activities, including swimming, water sports, tennis, volleyball, basketball, athletics and rowing. During the summer, young people from ages 5 to 15 years also have the chance to spend the whole day at the centers, taking part in leisure activities and intensive sports courses (athletics, swimming, soccer and tennis). There are currently over 500 people enrolled in Sisport sports teams. In the world of competitive sports, Sisports teams have achieved significant results in rowing, athletics and swimming. These included a silver medal won in the Under-23 Rowing World Championships, an Italian gold medal in the Junior Athletics Championships of Jesolo and a first place ranking by the novice team in the Italian UISP Swimming Championships in Montecatini.
Family Days
In 2011, Family Day celebrations were held at numerous facilities and locations across the Group. Family Day provides employees with the opportunity to showcase outstanding facilities and products with their family. Celebrating milestones and sharing company success play a key role in recognizing the efforts of workers. Among the many events held at Group companies, celebrations featured product and brand displays, family
171
entertainment activities, technology demonstrations and tours of the respective facility. Another opportunity for getting kids involved is the Childrens Christmas Day, which is held in Turin and celebrates the most eagerly anticipated event of the year. The children of Group employees, together with their parents and family, are invited to take part in a day entirely dedicated to games and celebrations, including entertainment shows, food tasting and organized play. The day ends with each child receiving a Christmas present.
Scholarships
In 2011, Fiat Group continued its commitment to childrens education and recognizing merit at an increasingly worldwide level. The children of Fiat Group employees who have excelled academically can receive study scholarships. Such initiatives cover 11 different countries around the world and are open to high school graduates, undergraduates and post-graduate students. In 2011, a total of 1,554 grants and scholarships amounting to approximately 2.3 million were awarded in Belgium, Brazil, Canada, China, France, Italy, Mexico, Poland, Spain, the UK and the US. For further details see page 247.
Summer camps
As the summer approaches, employees families have the chance to choose from a variety of dedicated camps for their children, organized in Italy by Vacanze Verdeblu from June to August. There are three main types of Vacanze Verdeblu camp, varying by the activities offered and the age of participants. Verdeblu Junior includes three Italian holiday villages open to children from age 8 to 12: one in Marina di Massa (Tuscany), another in Cascia (Umbria) and a third, established in 2011, in Sansicario (Piedmont). These camps all offer children the opportunity to experience nature, at the sea side or in the mountains, and explore the surrounding areas. Edutainment activities such as ecolearning sessions and creative workshops are also conducted in English to combine learning with fun and relaxation. For children ages 13 to 16 years, the Verdeblu Senior summer camps offer the chance to play all kinds of different sports
and to experience independence while learning to interact with others in group activities. Children can benefit from environmental education and a genuine taste of nature through camping and farmstay holidays on the island of Ischia (Naples), at the seaside resort of Misano Adriatico (Rimini) or at the Olympic center of Sansicario (Turin). Since 2011, participating in summer camps has become easier and more accessible to all Italian employees thanks to a specific website (www.fiatcares.com/centriestivi) and dedicated terminals located within facilities. To ensure equal opportunities for enrollment, fees have been updated based on employee grade and the number of children participating in the camps. In 2011, a total of 2,950 children chose Vacanze Verdeblu holidays. Probably the most appealing addition in 2011 to the range of summer offers was the new Juventus Summer Camp, open to children from 8 to 16 years of age. Based in three different locations (Sauze DOulx, Lignano Sabbiadoro and Termoli) it caters to the taste of those interested in a fun holiday improving their soccer skills. A team of qualified coaches, trained directly by the Juventus soccer academy, assists and gives each participant the chance to improve their technical skills and tactics. In its first year, the camp attracted around 300 budding young soccer stars. Overall, during 2011, participation in summer initiatives for the children of employees grew by 12% over 2010.
Social dimension
172
Social dimension
Employees
2011(1) Spending on Occupational Health and Safety(4) ( million) Percentage of personnel costs(5) 270 3.5
Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (4) Includes spending on improvements to safety and working conditions (improvements to facilities, worker protection, inspections of plants and the working environment) and to employee health (health care costs). (5) Personnel costs totaled 7,629 million in 2011, 7,687 million in 2010 and 4,221 million in 2009 (Chrysler Group data included for 2011 and 2010 calendar years: average annual exchange rates relative to years 2011 and 2010 applied).
(2) (3)
(1)
173
Successful management of health and safety-related risks is ensured through an approach based on two main drivers: preventive: risk identification and assessment are conducted and specific action plans with a priority level (from high/medium level to low) are put in place in order to minimize potential risk. The root cause of every health and safety noncompliance is analyzed and countermeasures are taken in order to avoid the risk of further issues proactive: employees are involved in safety-focused activities through training, awareness initiatives and a structured system for the collection of suggestions
In keeping with the Guidelines, the Group has continued its commitment to extending an Occupational Health and Safety Management System (OHSMS) certified to the OHSAS 18001 standard to all plants. At year-end 2011, a total of 103 plants (including two operated through joint ventures) accounting for a total of 121,000 employees had adopted a certified OHSMS. The dissemination of a management system based on standardized methods and procedures established centrally and certified externally is the method with which the Group brings its safety standards into countries with lower standards. This also assures that the safety management procedures at all manufacturing sites are consistent with the companys risk prevention and reduction objectives. By 2014, OHSAS 18001 certication will be extended to all Groups plants. The Occupational Health and Safety Management Systems are audited periodically by qualified internal personnel, as well as by independent certification organizations. During 2011, 158 external audits were performed against approximately 2,000 internal audits (+300% vs 2010) carried out by Group personnel covering a total of about 121,000 employees (about 100,000 in 2010).
OHSAS 18001 certications
Fiat Group worldwide
2010(2) 86 100
2009(3) 15 25
Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011.
(3)
Social dimension
174
Social dimension
Employees
0.73
0.44 0.28
2010(3)
2011(4)
Fiat Group worldwide (days of absence due to accidents per 1,000 hours worked)
2009(2)
2010(3)
2011(4)
Fatalities
Fiat Group worldwide
2010(3) 2
2009(2) 1
Near misses (approximately 27,000 cases reported and analyzed during 2011) and unsafe acts continued to be monitored, enabling the development of measures to prevent conditions and to correct behavior that could potentially cause a dangerous situation. Prevention, monitoring and first aid activities aimed at safeguarding health in the workplace are carried out by the
The Frequency rate is the ratio of the number of injuries reported (resulting in more than three days of absence) to the number of hours worked, multiplied by 100,000. (2) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (3) Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. (4) Data includes Chrysler Group for the full year. (5) The Severity rate is the ratio of the number of days of absence due to accidents to the number of hours worked, multiplied by 1,000.
(1)
175
medical and paramedical staff generally present at each Group plant in accordance with the specific needs of each site. In a limited number of plants (e.g., those with a small number of employees) these activities are performed by external healthcare facilities. In both cases, these personnel are completely integrated within the organization, duties and activities of the OHSMS. They provide medical care for occupational injuries and illnesses, treatment of minor personal illnesses, handling of medical emergencies, medical exams for work-related exposures, prevention through health education and health promotion. In 2011, approximately 375,000 medical visits were performed, including periodic and preventive check-ups and treatment requested by employees. Constant dialogue and sharing of know-how are essential to ensuring qualified solutions for safeguarding occupational health. Accordingly, a working group composed of specialized physicians serving each of the Groups individual companies has collaborated for a number of years in the definition of innovative methods and procedures to foster prevention. In 2011, three Chrysler Group divisions were honored by the US National Safety Council (NSC) that recognized their successful efforts to prevent job-related injuries as well as contributions by union and management safety specialists.
Medical treatments
Fiat Group worldwide
Occupational illness (i.e., diseases resulting from gradual and progressive harm to the worker, which occur during, and as a direct consequence of, insured activities carried out by the worker) is also constantly monitored by Group companies. The objective is to identify working conditions that may have triggered their onset, assess any residual risks and implement corrective measures to prevent their recurrence. Information on occupational illnesses occurring within the manufacturing environment is gathered and classified according to two distinct categories: case files
(1)
2009(3)
2010(2)
2011(1)
Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011.
(2) (3)
Social dimension
opened and verified cases of disease. The former are cases being investigated and verified by insurers in accordance with the applicable local regulations, to verify the existence of the occupational disease and any causal link with the work activities performed. The latter are cases where the insurer, upon completion of its investigation, confirmed that the above conditions exist. In 2011, a total of 642 cases of occupational disease were verified by the relevant insurer in the respective country. The Occupational Illness Frequency rate, that shows the ratio of cases of occupational illness per 100,000 hours worked, was 0.18 in 2011. Most of these cases refer to situations that no longer exist within the Group, as they are associated with working methods and environmental circumstances that have long since been eliminated. For further details see page 250.
176
Social dimension
Employees
2009(3) 371 57 46
During 2011, the Health and Safety First training project underwent a revision that took into account the experience and feedback collected during its first year of implementation at the various sites. This program was designed in association with Italian trade unions with the objective of encouraging behaviors consciously oriented towards following safety rules and risk prevention. During the year, the new program was extended to six Italian plants covering a total of about 6,000 employees in addition to the 16,000 from the previous year. The Top Ten Safety project, which establishes standard methods for focusing the attention of plant workers on health and safety, was updated and subsequently rolled out over the course of 2011 to all European plants. It will be extended to Group plants worldwide in 2012. This initiative includes internal communication on accidents, management of visitors and external contractors, factory signs, clothing and personal protection equipment. The course Health and Safety in the Ofce was created in 2010 to provide office workers with the necessary information on health and safety in the workplace. This covers emergency response to the most common hazards present in an office environment, including electrical hazards and overexertion, and illustrates the proper use of computer monitors. In 2011, the feedback received from around 18,000 participants in the online training course was processed, and by the end of 2013 the course will be extended to all salaried employees worldwide. The collaboration with trade unions also extends to cover training issues relative to health and safety. The foundation of the Organismo Paritetico Health and Safety (OPHS), a joint body in which Fiat S.p.A., Fiat Industrial, the Employers Association of Turin and the trade unions FIM-CISL, UILMUIL and FISMIC take part, is one example. The OPHS is composed of company representatives and workers and is nationally responsible within its area of competence of health and safety for promoting initiatives and dening training programs aimed at professional figures involved in the OHSMS (see also page 183). Similarly, Chrysler Group continued to work with trade unions to enhance the effectiveness and efficiency of safety training developed to help drive ongoing improvement in the area of hazard identication and procedural compliance.
Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011.
(2) (3)
(1)
177
Workstation ergonomics
Fiat Group is particularly attentive to the impact of ergonomics in the organization of processes, workstation design, choice of equipment and denition of production methods. During the production line design phase, in addition to ensuring safety, it is also essential to determine all of the characteristics that will result in improvement of adaptability, usability, comfort and well-being. Ergonomic design in the work environment helps people do quality work and prevents injuries and illnesses, such as strains and sprains or musculoskeletal disorders.
Continuous specialized staff supervision of processes, investments in research and development and constant updates in observance of international and national standards (e.g., ISO 11228 and UNI EN 1005 series; see also page 252) are the three drivers that allow the Group to identify innovative solutions for improvement of the ergonomic value of workstations. For several years, Centro Ricerche Fiat, the Groups center of expertise for innovation and development, has been engaged in defining and developing methods and tools that enable the promotion of progressively higher ergonomic standards. Over the last few years, workplaces and tools have been gradually adapted to a working population that varies in gender, age and anthropometric parameters. In 2011, Fiat Group Automobiles (FGA) employed digital human modeling tools that, through simulations with virtual mannequins during the design stage, allowed monitoring of correct posture for workers at the workstation. In this manner, each worker may be assigned a workplace best suited to his/her physical characteristics. The employees specific gender and age characteristics with particular emphasis on women and those over age 45 are also the subject of systematic analysis for determining corrective parameters to be applied to workstations.
Social dimension
178
Social dimension
Employees
At Chrysler Group, a corporate ergonomist is assigned to assess processes to eliminate or reduce ergonomic risk factors during the design stage of planning for each new product. Moreover, every plant in the United States and Canada has a dedicated Local Ergonomic Committee that meets biweekly to prioritize and review job activities for ergonomic risk. Other actions geared towards the constant and widespread ergonomic improvement of workstations are planned for 2012. An innovative ergonomics laboratory will be inaugurated at Fiat Group Automobiles (FGA), housing replicas of segments of the production line for a more sophisticated measurement of the ergonomic impact of the workstation. Also, the extension of the Ergo-Uas methodology for ergonomic workstation design and the EAWS (European Assembly Work-Sheet) methodology for ergonomic risk assessment will be completed at all of the FGA assembly plants in Italy and Europe, respectively. The Ergo-Uas methodology was already applied at six Italian assembly plants in 2011. Great attention is also given to minimizing exposure to noise, chemicals and other agents as well as provision of more comfortable conditions (i.e., lighting, temperature and humidity). Working environment conditions such as cleanliness, low levels of noise, dust and other chemicals, as well as adequate lighting, together with ergonomics, are key aspects
of the Safety and Workplace Organization pillar of World Class Manufacturing. At Chrysler Group, the Industrial Hygiene and Toxicology program conducted 251 formal assessments of potential contaminants in 2011. The program reviews the effect of new chemicals, noise and oil mist levels on new operations and monitors potential air contaminants.
Work-related stress
Promoting the health and safety of employees throughout their work life implies a broader viewpoint of health that goes beyond the mere absence of injuries and targets the individuals overall physical and mental well-being. Work-related stress is an emerging psychosocial risk that the company is committed to addressing through a variety of prevention measures and initiatives. In recent years, much attention was invested in the assessment and management of this type of risk by seeking to identify working conditions that may act as triggers of work-related stress and implement remedial action in order to deal with the cases identified. In 2009, a working group composed of internal health and safety specialists, together with experts from the fields of science and academia, was launched. A standardized methodology for the analysis and assessment of risks linked to work-related stress was thus defined.
179
This methodology draws on recommendations from the Italian Network for the Prevention of Psychosocial Distress in the Workplace. It has been tailored to the Groups specific circumstances and includes a comprehensive, multi-phase risk assessment analysis. This assessment establishes objective indicators that could be associated with conditions of work-related stress, quantifies the probability of this stress and measures the extent of employee strain using questionnaires targeted to the specific characteristics of the work environment being evaluated. Following the 2010 implementation at all Group locations in Italy (involving more than 44,000 employees), in 2011 this methodology was adapted to local circumstances and Group sites deemed to be potentially the most affected by the issue (involving 19,000 employees) were identified. The 2012 objective is to implement action plans to eliminate causal factors, thus limiting new cases of work-related stress at sites where risk is assessed as most likely. One action undertaken to foster more management awareness and prevention of psychosocial risks is the innovative training initiative called Docteur Zen started by Fiat France. This training aids employees in recognizing risks linked to stress and in learning practical methods to deal with situations that could generate it.
Social dimension
180
Social dimension
Employees
The companys commitment to wellness is also represented by the long-standing Chrysler Group Wellness Program that includes initiatives such as weight loss programs, health fairs and health screenings, as well as the availability of a fitness facility at the Auburn Hills headquarters. Within the Chrysler Group Wellness Program, employees are encouraged to complete a Health Risk Assessment (approx. 9,000 US employees involved during 2011). The evaluation consists of a lifestyle questionnaire to identify risks and encourage risk reduction through healthy behaviors. Biometric screening checks for cholesterol, blood pressure and glucose have been completed during the year for approximately 11,500 employees. Risk levels are captured and aggregate changes monitored on an annual basis. Each participant receives counseling from the program staff or online coaching based on their results. Incentives vary depending on the program (e.g., sportswear articles, techno-gadgets, annual economic incentives such as healthy people credits or tobacco free credits that can be used within health plans) and are given to empower and recognize employee participation and accomplishments. In 2011, the US National Business Group on Health (NBGH) awarded Chrysler Group with a gold medal as one of the leading corporations that has truly embraced a culture of wellness aimed at improving employees health and quality of life. In addition, specific health promotion campaigns are in place throughout the Group. In 2012, a comprehensive groupwide health promotion program will be launched. The program will draw from experience attained both internally and externally to the Group and will follow the health and safety principles of the main international organizations, especially the World Health Organization (WHO), the US Occupational Safety and Health Administration (OSHA), the European Agency for Safety and Health at Work (EUOSHA), and the International Labour Organization (ILO). It will encompass various initiatives such as the Good Control of Diabetes project, developed in partnership with the Italian affiliates of the International Diabetes Federation (a worldwide federation, associated with the WHO) and the Smoking Cessation campaign, an initiative developed with the backing of the SITAB (Italian society for the clinical study of smoking) and the ISS (Italian health institute). The Group
181
2012 agenda also calls for the formulation and dissemination of guidelines to address company commitment in favor of employee well-being.
(1)
Social dimension
182
Social dimension
Employees
a joint governance structure, with its administrative bodies composed of equal numbers of company and employee representatives. Two-thirds of plan expenditures are covered by the company and the remaining third by the employee, who also pays a similar amount for any family members enrolled. If an employee uses public health care facilities, the plan reimburses any expenses not covered by the national health system. If an employee uses private facilities, the plan provides high coverage limits with direct payment of expenses incurred at accredited health care facilities, and partial reimbursement of expenses incurred at any other facility the plan member may choose. Prevention programs with regular check-ups and a maternity package are also provided. In 2011, FASIFIAT provided services to nearly 22,000 employees (74% of whom were hourly workers), along with their family members. The FASIFIAT operations center coordinates appointments at more than 470 private medical facilities; approximately 10,800 outpatient clinics, diagnostic centers and laboratories; over 80,000 specialist physicians, health care
and social care providers; and nearly 4,750 accredited dentists. The plan also provides an on-call medical service 24 hours a day, 365 days a year. Operating and management procedures for FASIQ are similar in many ways to those for the fund available to hourly and salaried workers. FASIQ provides services through specic insurance coverage according to a model based mainly on direct health care, utilizing the same network of accredited facilities as FASIFIAT. In 2011, FASIQ provided supplementary health care to nearly 10,200 professionals and their family members. According to the specic collective agreements, FISDAF provides services to both managers (active and retired) and their families, mainly in the form of reimbursements for health care expenses and the direct payment of dental care. Some services are provided through the Fiat Sepin Medical Diagnostic Center. The Center provides X ray, ultrasound scan, samples, examinations and check-ups to eligible Fiat employees as well as to other individuals enrolled in relevant plans. During the year, 30,000 specialist examinations, 650 check-ups, nearly 200,000 laboratory tests and 2,500 occupational health exams were conducted at the Medical Diagnostic Center. In 2011, the center moved to a larger facility of around 3,300 square meters, with a new modern clinical laboratory and updated radiology equipment. The Medical Diagnostic Center will also host a sports medicine center that conducts check-ups for certication to engage in competitive or amateur sports activities and ensures assistance through a staff of specialists in physiatry, orthopedics, cardiology, nutrition, physiotherapy and postural gymnastics. In the US, the Chrysler Group Health Care Benet Plan provides eligible employees and their eligible dependents with a comprehensive health care benefits package shortly after employment has begun. Four different health plans promote preventive care, well visits and patient education. The benefits include coverage for medical, prescription drug, dental, vision, mental health and substance abuse services. Employees are able to enroll in the option that best meets their health care needs. Salaried employees have two medical plan design options: Preferred Provider Organization
183
(PPO) and High Deductible Health Plan with Health Savings Account (HDHP/HSA). The PPO offers a managed system of health care through a selected group of physicians, clinics and hospitals, who have signed a contract with the PPO. The HDHP/HSA provides medical coverage with the ability to build tax-free funds to cover future medical expenses. Represented employees (those who are covered under a collective bargaining agreement) have access to a PPO as well as the two following additional plans. The Standard Care Network (SCN) allows members to direct their own health care and visit almost any doctor or hospital, with the insurance company paying a predetermined portion of the total charges. The Health Maintenance Organization (HMO) is a group health insurance plan where the doctors and facilities work directly for the HMO. Employees are required to select a primary care physician who will then direct their medical needs to the systems providers.
Social dimension
184
Social dimension
Employees
Industrial relations
As stated in the Fiat S.p.A. Code of Conduct, the Group recognizes and respects the right of its employees to be represented by trade unions or other representatives established in accordance with local applicable legislation and practice. Fiat Group maintains relationships with trade unions and employee representatives that are based on mutual respect, engagement and constructive interaction. During 2011, dialogue continued to be pursued to achieve consensus-based solutions designed to raise the high standard of competitiveness of the Groups companies and manage the impact on jobs of measures taken in response to market conditions, which remain critical particularly in Europe. Production stoppages implemented through recourse to temporary layoff benet schemes, where available, or other measures based on collective agreements or company policy were lower overall than in 2010 (with the exception of Italy), as was the level of restructuring and reorganization.
The need to increase production volumes to respond to improved conditions in some markets was primarily satised through the use of overtime and hiring of new employees, mainly in the US and Latin America.
Social dialogue
In Italy in 2011, two developments marked a transformation in the industrial relations system, both of them designed to spur Italian industry back to growth in the current economic context. The rst was the Interconfederate Agreement of June 28 between the employers association Conndustria and the trade unions CGIL, CISL and UIL, on reforms to the bargaining system and workers representation. The second came with the approval by Parliament of Article 8 of the Stability Law, introducing key elements for labor market exibility, including the option for companies to negotiate labor agreements directly, in departure from laws and industry-specic national collective bargaining agreements. In response to these developments, Fiat S.p.A. decided to withdraw its membership from Conndustria.
185
Together with the majority of unions, it forged a new and innovative rst-level collective labor agreement (Contratto Collettivo Specico di Lavoro di primo livello CCSL) which came into effect in Italy as of January 2012, replacing the national collective bargaining agreement and other arrangements formerly in place at Fiat S.p.A companies. The new accord follows in the footsteps of the agreements made in 2010 affecting workers at the Fabbrica
Italia Pomigliano (FIP) and at the Fiat Group Automobiles (FGA) Miraori plant, and in 2011 with employees at FGA Ofcine Automobilistiche Grugliasco (OAG). The agreements provide part of the framework for new investments in Italy. As with the Pomigliano, Miraori and FGA OAG agreements, negotiations over the labor agreement highlighted divisions within the trade unions. The end result was an agreement signed by the majority of the trade unions, with the exception
Social dimension
186
Social dimension
Employees
of the FIOM, which chose not to take responsibility for the introduction of the innovative rules outlined by the agreement. By doing so, the FIOM forfeited its right to have representatives at Group companies, as under Article 19 of the Workers Statute (Law 300/1970), workers representatives can only be established in companies at the initiative of workers belonging to trade unions that are signatories to the collective bargaining agreements in place at the production facility. The FIOM took its campaign to the media, questioning the credibility of the Groups industrial choices, in particular with respect to investments announced, as well as the legitimacy of the industrial relations systems outlined by the CCSL. The CCSL was in fact signed by the majority of the unions and approved by workers representatives after a referendum held on the shop floor. The position held by the FIOM is contradictory, however, as on the one hand it claims to have been excluded unlawfully from the Fiat S.p.A. industrial relations system, but at the same time it has petitioned the government, through
the CGIL (its umbrella federation) to amend Article 19 of the Workers Statute (Law 300/1970). The European Works Council (EWC) is a supranational representative body whose purpose is informing and consulting workers at companies which have a panEuropean presence. Fiat Groups EWC was established in 1997, as a result of the founding agreement signed in 1996, and subsequently revised and amended. On 28 June 2011, a renewal agreement was signed concerning the Fiat S.p.A. EWC, following the demerger (1) in January 2011. The accord addressed and resolved questions raised by the European Metalworkers Federation (EMF) over the entitlement of the Italian trade unions to represent the EMF in negotiations held in 2010. In the United States, on 12 October 2011, Chrysler Group and the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) reached an agreement on a new fouryear contract covering approximately 26,000 hourly and salaried-represented employees (see also page 187). Chrysler Group and the Sindicato Nacional de Trabajadores de la Industria Automotriz Integrada, Similares y Conexos de la Repblica Mexicana successfully completed in 2011 the annual bargaining process in Mexico. The parties were able to resolve differences and reach an agreement. The new agreement, covering approximately 6,000 employees, ensures that competitive labor cost is maintained, as the cost of the wage increase was offset by savings arising from the implementation of improved work rules.
Collective bargaining
Around 90% of the Groups employees worldwide are covered by collective bargaining agreements. In Italy, all Group employees are covered by such agreements. Until 2011, managers were covered by the agreement for managers of companies producing goods and services signed by Conndustria and the national union for managers (Federmanager), which sets minimum pay levels and general employment conditions for this category. Other employees were covered by the national collective labor agreement (CCNL) for metalworkers, which applied to
(1)
Refers to the partial proportional demerger of Fiat S.p.A. to Fiat Industrial S.p.A.
187
almost all Group companies until the end of 2011. Starting from 2012, Group employees in Italy will come under the rstlevel collective labor agreement (CCSL), whereas managers will be subject to the collective labor agreement for managers at Fiat S.p.A. and Fiat Industrial S.p.A. companies (Contratto Collettivo di Lavoro per i Dirigenti di Aziende Fiat e Fiat Industrial), signed on 23 December 2011 with Federmanager.
Outside Italy, around 80% of employees are covered by collective bargaining agreements. This is an average gure based on local practice and regulations that vary from country to country. However, formal policies relating to certain collective aspects of the employment relationship (working hours, internal policies and procedures, benets, etc.) apply to almost all employees of Group companies where there is no trade union representation. In Brazil, negotiations to renew the collective labor agreement came to a close on 24 October 2011, resulting in general wage adjustments (formalized in the agreement with local employers associations in the category) and the awarding at the Betim site of a one-time bonus at the automotive industry level. At the Kragujevac site in Serbia operated by Fiat Automobiles Serbia Doo, a trade union agreement was signed in November 2011 which sets forth the industrial relations system to be implemented at the site, in addition to compensation matters and the organization of work (shifts, working hours, etc.). With respect to Chrysler Group, in the United States, supplemental Local UAW Agreements exist at each US Chrysler Group facility employing union-represented workers, dening the rules for job posting, the allocation of overtime hours and shift preferences for UAW-represented employees.
(1)
Social dimension
188
Social dimension
Employees
In Canada, there are supplemental Local CAW Agreements at each Chrysler Group facility employing union-represented workers, dening the rules for job posting, the allocation of overtime hours and shift preferences for CAW-represented employees. In Mexico, agreements are negotiated annually with the Sindicato Nacional de Trabajadores de la Industria Automotriz Integrada, Similares y Conexos de la Repblica Mexicana for each facility employing union-represented workers (wages are negotiated every year; benets are negotiated every other year).
Collective agreements signed during the year at company/plant level
Fiat Group worldwide (no.)
2011(1)(3) 485
2010(2)(4) 509
Wage issue Operating issue Restructuring Occupational Health and Safety (5) Equal opportunities Training Other(6)
2011(3) 29 64 6 8 0.2 4 7
189
During the year, four Group plants reached the limit for ordinary benets (52 weeks in any rolling two-year period) and recourse was made to an extraordinary temporary layoff benet scheme (1) which provides for a further 12 months coverage. Approximately 8,500 workers were affected. Falling demand in the European automotive market had an adverse impact on production levels in Poland. Since the beginning of 2011, Fiat Auto Poland has cut back on overtime work on Saturdays, and, as the negative trend in orders and consequent fall in production volumes continued, the company was compelled to terminate agency contracts at its Tychy plant. In Brazil, work on the new Pernambuco plant got underway in 2011, after being announced on 28 December 2010. In March 2011, a trade union agreement was made covering operations run by Group companies in Pernambuco. The agreement
also concerns the activities of over 30 suppliers which will set up operations at the site. At Betim, another important Group production site in Brazil, the growth in production that characterized 2010 continued into 2011. An agreement was signed on 24 January 2011 enabling Fiat Automveis, Fiat Powertrain and Comau to run two production shifts on Saturdays at overtime rates and to reduce the number of rest days during the Carnival period so as to increase production by approximately 90,000 vehicles. With respect to Chrysler Group, in 2011 the company boosted vehicle production in response to increasing customer demand and consistent with the 20102014 Business Plan announced in 2009. The Chrysler Group hourly workforce across North and Latin America increased correspondingly by approximately 1,650 employees compared with the previous year.
(1)
Cassa Integrazione Guadagni Straordinaria per crisi aziendale per evento improvviso e imprevisto.
Social dimension
190
Social dimension
Employees
Union membership US
Fiat Group US(4) (% of total workforce excluding managers)
FIOM
10.8%
FIM
9.7%
UILM Non-union members
8.9%
FISMIC
Non-union members
UAW
61.1%
28.1% 6.3%
UGL Metalmeccanici
70.7%
2.1%
FAILMS
1.2%
0.5%
Other trade unions(3)
0.6%
In Canada, the Canadian Auto Workers union (1) (CAW) represents approximately 8,000 hourly production workers and 115 salaried ofce workers. In Mexico, the Sindicato Nacional de Trabajadores de la Industria Automotriz Integrada, Similares y Conexos de la Repblica Mexicana represents approximately 6,135 hourly production workers at eight different facilities. In Venezuela, the Sindicato de Trabajadores de Chrysler de Venezuela represents approximately 825 hourly production workers.
(1)
UAW and CAW numbers exclude temporary part-time (TPT) workers. The survey covered a sample of approximately 99% of metalworkers. Other includes independent trade unions and FLM. (4) The survey covered 100% of US workforce, TPT workers excluded.
(2) (3)
191
continue in 2012 with the objective of updating and adding basic skills, as well as raising awareness and spreading the use of WCM methodologies for workers placed on extraordinary temporary lay-off benets scheme. Outside Italy, no signicant restructuring or reorganization operations were undertaken. For further details see page 250.
Labor unrest
In 2011, the level of labor unrest in Italy showed little to no change over 2010. The most signicant labor action consisted of strikes called by the FIOM-CGIL to protest developments in contract negotiations at the Pomigliano and Miraori plants, and against the potential extension of the rst-level collective labor agreement (Contratto Collettivo Specico di Lavoro di primo livello CCSL) signed on 29 December 2010, over which the FIOM-CGIL has voiced strong opposition and open hostility. Strike action was also held over the non-payment of additional amounts of the performance-related bonus. There were also a few instances of minor labor action organized locally in relation to the organization of work (e.g., shifts, overtime and workloads). Labor unrest in other countries was negligible in 2011, and involved local issues at individual plants.
(1)
Social dimension
Product safety
Social dimension
193
Product safety
Safeguarding drivers and all road users is the cornerstone of Fiat Groups holistic approach to sustainable mobility. Thus, new ways of improving the active and passive safety standards of vehicles, as well as drawing on initiatives to promote responsible individual behavior, represent the foundation of a philosophy based on respect for human life. This is the commitment that customers deserve.
With an indoor 91-meter, two-lane roadway including roadside markings, overhead signs and reflectors the facility is used for headlamp, fog lamp and taillight testing. It is capable of creating consistent weather conditions, regardless of season or time of day, and is equipped with fog simulation equipment.
Social dimension
194
Social dimension
Product safety
Safety ratings
Fiat Groups approach has yielded significant results. For the last six years, every new model released by Fiat Group Automobiles has been awarded the Euro NCAP 4- or 5-star rating for safety. In 2011, the Lancia Thema and Fiat Freemont won the prestigious Euro NCAP 5-star rating, while Lancia Voyager and new Fiat Panda earned the 4-star rating. Furthermore, the US Insurance Institute for Highway Safety (IIHS) named 11 models from Chrysler Group as Top Safety Pick for 2012, compared with eight in 2011: the Chrysler Town & Country, 300 and 200; Dodge Grand Caravan, Durango, Charger, Journey and Avenger; Jeep Grand Cherokee and Patriot; and the Fiat 500. To be named a Top Safety Pick, vehicles must achieve the highest possible rating in front, side, rear and roof strength tests performed by the institute. They must also be equipped with standard Electronic Stability Control (ESC).(1) According to some studies, ESC has been shown to reduce fatalities by 2050% and fatal rollover crashes by 6585%. The US National Highway Traffic Safety Administration (NHTSA) has made ESC a mandatory feature for all 2012 model year lightpassenger vehicles. Chrysler Group began installing ESC on vehicles in 2003 and has produced more than four million vehicles with this feature.
Euro NCAP rating (2)
Fiat Group Automobiles Europe
Rating
Fiat Freemont (4) Lancia Thema (4) Alfa Romeo Giulietta (4) Alfa Romeo MiTo Lancia Delta Fiat 500 Fiat Bravo Alfa Romeo 159 Fiat Grande Punto New Fiat Panda (4) Lancia Voyager(4) 5 star 5 star 5 star 5 star(5) 5 star(5) 5 star(5) 5 star(5) 5 star(5) 5 star(5) 4 star 4 star
(1) Top Safety Pick based on 31 mph (50 km/h) side-impact crash test, 40 mph (64 km/h) frontal-offset crash test, 20 mph (32 km/h) rear-impact test, roof strength testing and the presence of Electronic Stability Control. Tests performed by the Insurance Institute for Highway Safety. For details, visit www.iihs.org. (2) Rating for vehicles in the Fiat Group Automobiles range launched from 2005 onwards. (3) Category introduced for new Euro NCAP rating system. (4) Scores based on post-2009 Euro NCAP rating system; equivalent numeric scores based on pre-2009 Euro NCAP rating system are shown in parentheses. (5) Star rating according to adult occupant protection (pre-2009 Euro NCAP rating system).
195
seats closer to the nape of the neck, significantly reducing the risk of whiplash injury in the event of a rear-end collision. The commitment to assist customers in everyday driving situations and protect them in the event of a crash is enhanced by carrying over architectural solutions and safety devices offered in higher segments to smaller vehicles like the new Lancia Ypsilon and new Fiat Panda. To standardize vehicle response in the event of a collision, these vehicles have been equipped with an energy-absorbing front-end, and the structure of the seats and the restraint systems have been optimized to protect the most vulnerable passengers such as children and the elderly. To enhance child safety, the new custom-designed car seats presented in 2010 on the Alfa Giulietta are now available on the new Fiat Panda and the new Lancia Ypsilon. The Group continually researches solutions for protecting other road users as well. In fact, a new hood architecture, first developed for the Alfa Giulietta, was applied to the new Fiat Panda. This feature is designed to reduce the risk of pedestrian head injuries in an impact. In the upper segments (Fiat Freemont, Lancia Thema and Voyager) the innovative Active Pedestrian Protection System has been introduced. This feature raises the hood in the event of a collision, increasing the amount of hood deformation and reducing the consequences for pedestrians.
Social dimension
196
Social dimension
Product safety
Driving support
Fiat Group Automobiles brands Chrysler Group brands Fiat Group Automobiles brands Chrysler Group brands ADAPTIVE CRUISE CONTROL STOP & GO PERPENDICULAR/PARALLEL AUTOMATIC PARKING IN TIGHT SPACES Fiat Group Automobiles brands Chrysler Group brands
TIRE PRESSURE MONITORING ADAPTIVE FRONT LIGHT SYSTEM BLIND-SPOT MONITORING REAR CROSS PATH DETECTION ADAPTIVE CRUISE CONTROL REAR CAMERA HANDS-FREE BLUETOOTH CONNECTIVITY VOICE CONTROL AUTOMATIC PARKING (1)
V2X COMMUNICATIONS
Collision avoidance
Fiat Group Automobiles brands Chrysler Group brands Fiat Group Automobiles brands Chrysler Group brands Fiat Group Automobiles brands Chrysler Group brands
ELECTRONIC STABILITY CONTROL (ESC) LANE DEPARTURE WARNING (1) FORWARD COLLISION WARNING ELECTRONIC ROLL MITIGATION
PEDESTRIAN DETECTION
Damage mitigation
Fiat Group Automobiles brands Chrysler Group brands Fiat Group Automobiles brands Chrysler Group brands Fiat Group Automobiles brands Chrysler Group brands
PRE-COLLISION ENHANCE
(1)
197
Other innovative safety-related features that are being evaluated include potential upgrades to Adaptive Cruise Control, Forward Collision Warning and Blind-spot Monitoring. The enhanced Adaptive Cruise Control will automatically activate the brakes to slow the vehicle down to a complete stop, if required. Once the vehicles path becomes clear again, this feature increases vehicle speed until the drivers preset speed is reached. The potential upgrade to Forward Collision Warning includes a control unit that detects an obstacle in front of the vehicle and calculates speed, steering angle and position factors to determine in advance whether a collision is imminent. If the system finds that a crash is inevitable, it warns the driver and automatically takes action to protect the vehicles occupants (such as retracting the front seat belts and preparing the vehicles braking system for increased braking force to help reduce the speed of impact). In addition to these enhancements of existing safety features, the Group will continue to advance the development of new solutions designed to safeguard all road users.
(1) VDC includes Electronic Stability Control (ESC), F1-Trac (a traction control system that comes from Formula 1), Magnetorheological Suspension Control (SCM) and high-performance ABS.
Social dimension
198
Social dimension
Product safety
the right balance between time on the track and sessions spent on emergency situations, where the cars are driven on different simulated surfaces to recreate emergency conditions. In addition to promoting safety by offering specific driving courses, Fiat Group also supports public awareness campaigns related to child safety in vehicles and proper vehicle maintenance. Chrysler Group has a long history of creating programs designed to keep drivers and families safe and is a cofounder of the US SeatCheck program. This initiative teaches parents how to properly secure their children in motor vehicles through free child safety seat inspections carried out by certified technicians. In 2011, in order to raise awareness among drivers of the effect proper vehicle maintenance has on the functioning of safety devices, Fiat Group Automobiles (FGA) continued to offer the Summer Check-Up programs, along with special promotions on vehicle safety components that may need to be replaced. Furthermore, specific sections were introduced in the user and maintenance handbook for a variety of models underscoring the importance of scheduled and timely maintenance necessary to keep a vehicle in original condition.
199
Each FGA vehicle is also equipped with a label to raise customer awareness of the importance of purchasing original spare parts in order to guarantee the proper functioning of passive safety systems. Another initiative to raise customer awareness on the topic of proper maintenance was developed by Magneti Marelli. Called OBD-Road, this special diagnostic support tool is connected to the OBD (on-board diagnostics) plug. It assesses the quality of conditions of different vehicle subsystems that manage the ignition system (catalytic converters, lambda sensor, etc.) and warns the driver directly in the event of any errors. Through the use of a Global System for Mobile Communications (GSM) network, the information is automatically sent to the nearest Magneti Marelli infomobility service center, which then contacts the customer to schedule the necessary repair. Similarly, Mopar the Chrysler Groups service, parts and customer care organization introduced the Electronic Vehicle Tracking System (EVTS). EVTS provides owners added peace of mind by alerting them if their vehicle is being driven too fast or too far over preset parameters. The system is available on
Chrysler, Jeep, Dodge, Ram and Fiat North America vehicles. With the introduction of its industry-first EVTS vehicle-tracking system, Mopar earned a Value Chain Award in the automotive category from Connected World magazine for the process of combining multiple mobile-to-mobile technologies to create a winning solution for customers.
Distracted driving
Distracted driving is recognized as one of the most serious threats to safety on the roadways. Keeping the drivers eyes on the road and their hands on the wheel is the objective of Fiat Groups Human Machine Interface (HMI) team. Aimed at combating distracted driving, hands-free communication using Bluetooth technology, offered on the Uconnect platform, is available on all Chrysler Group vehicles. It enhances the driver and passenger experience without becoming overwhelming or distracting. Its advanced voice command recognition makes hands-free operation of phones and radio station tuning possible. Furthermore, the Txt U L8r application was launched in 2010 to address the risk of texting while driving. This free smartphone app automatically sends a predetermined text message back to the sender advising that the recipient is currently unavailable. At the same time, the received message is read aloud to the driver, ensuring he or she doesnt miss an urgent message. An upgrade of the application that allows the driver to respond to messages with voice commands is also available for purchase. Fiat Group Automobiles (FGA) vehicles have been equipped with built-in hands-free Bluetooth technology and Voice Control since 2005. Voice Control enabled by the Blue&Me platform was introduced in the new Fiat Panda and new Lancia Ypsilon in 2011, making its availability complete throughout the entire range of FGA vehicles. Voice Control is also found on the Uconnect platform in the Fiat Freemont and Lancia Thema and Voyager. Both systems support advanced voice recognition for managing phone calls and media players by simple voice commands.
Social dimension
Social dimension
201
Social dimension
202
Social dimension
Activities such as service check-in, scheduling vehicle delivery and managing spare parts supply have a significant impact on customer perception of service quality and, consequently, on the level of customer satisfaction. Lastly, training activities to support dealership owners and managers also continued during 2011 through the FGA Effect program, a professional Dealer Business School modeled after university-level business management curriculums. This program provides dealers with training in managerial skills and tools to help successfully address changing conditions at the global and local level, placing particular emphasis on succession management. Now in its fourth year in Italy, Effect has been extended across Europe. In 2011, Chrysler Group launched (in the US, Canada and Mexico) iExam, a business analysis tool that allows dealers to analyze their financial performance. The tool identifies possible out-of-line conditions and/or opportunities, and provides key performance indicators, corporate benchmarks and financial performance reports developed to help sustain a profitable business.
(1)
As of September 2011, four Regional Operations Groups have been established to manage car manufacturing and sales activities within the entire Fiat Group: NAFTA (Canada, Mexico and the US), EMEA (Europe, Africa and Middle East), LATAM (Latin America) and ASIA.
Social dimension
204
Social dimension
of alternative energy and new technologies for both heating and cooling; the use of photovoltaic solar panels to produce electricity; attention to building orientation to optimize lighting and ventilation; the optimization of waste recycling and the reuse of rain and gray water. In addition, highly-recyclable and zero or low-toxic emission construction materials are recommended. These Guidelines are applied to the construction of new FGA-owned dealerships, and their adoption by new and existing private network premises will be encouraged starting in 2012. In an effort to promote and support the same principles throughout its dealer network, the Chrysler Group Network Development organization and the Corporate Sustainability Office initiated the Dealer ECO (Environmentally Conscious Operations) program. This voluntary program provides an opportunity for dealers to demonstrate their commitment to ecologically sound business practices and be recognized for their efforts. It consists of three elements: a survey of the current dealer networks environmental practices, recognition of top ECO dealers and sharing of best practice. Dealers who exhibit exemplary performance in ECO practices are nominated for the Chrysler Group Environmental Leadership Award (ELA). In 2011, two Chrysler Group dealers received ELA awards for initiatives such as the use of solar array systems; extensive recycling programs for oil, tires and other waste; and the installation of energy-efficient heating, cooling and lighting systems.
Customers
Social dimension
205
Customers
Customer satisfaction is a fundamental prerequisite for a companys long-term success. A satised customer is a loyal customer who can be a promoter of the brand in the marketplace. Fiat Group places customers and their needs at the center of its activity: from the design phase, to the purchase experience at the dealer, to the provision of after-sales service and assistance. As customer needs change over time, they must be frequently assessed in order to continue providing a positive service and ownership experience.
are the main channel of communication between customers and the company. The FGA Customer Contact Center, located in Arese (Italy), supports not only FGA, Maserati and Chrysler Group customers in Europe, but also Case New Holland (CNH), Magneti Marelli, FGA Capital and Fiat Services in 20 countries. Chrysler Groups Customer Contact Center supports all North America Chrysler Group and FGA brands. It is operated by the Mopar Service, Parts and Customer Care organization. The Customer Contact Centers offer a variety of services: from information, to complaint management, to roadside assistance. The FGA CCC is a multilingual center with 89% of
Customer relationship
Fiat Group continually strives to align activities in all areas, from marketing and technical service to sales, to the needs of customers. To achieve this objective, dedicated Customer Care organizations have been established at Fiat Group Automobiles (FGA) and Chrysler Group in order to: improve relationships with customers by opening multichannel interaction increase customer satisfaction build and improve customer loyalty Customer Contact Centers (CCC), together with dealers,
Social dimension
206
Social dimension
Customers
the employees being native speakers in one of the 15 different service languages. With 428 personnel, the FGA Customer Contact Center handled approximately four million contacts in 2011 (of which three million for the car business only) and is one of the largest such centers in the automotive sector in Europe. The Chrysler Group CCC handled approximately 2.5 million contacts in 2011 (+ 39% over 2010) with 430 personnel in three locations. Both the FGA and Chrysler Group Customer Contact Centers manage the entire process, from the first contact with the customer until a response has been given, ensuring resolution in the shortest possible time. Phone agents are constantly trained in order to provide a best-in-class service experience: in 2011, FGA personnel received 20,000 training hours and Chrysler Group agents received 9,000 training hours.
Monitoring results
Fiat Group Automobiles (FGA) and Chrysler Group are equally committed to providing excellent customer care service. Both regularly monitor the results and level of customer satisfaction in order to improve the quality of response for both information and complaint services. Surveys following customer interactions are used to measure the satisfaction level of customers. FGA and Chrysler Group collaborate on key indicator development and customer care best practice. The key indicators for the Customer Contact Center activities in 2011 were contacts handled, customer satisfaction, response time and average vehicle downtime.
Chrysler Group
2.5 million 3% 8.1 6.7 87% of calls handled within 30 seconds contacts settled within average of 0.6 days settled in 6.1 days 69% settled in less than 5 days under development
207
customers entire ownership experience. By simply entering their Vehicle Identification Number (VIN) on the website login page, customers can access information about their Chrysler Group product, such as service history and service maintenance recommendations, as well as download special offers, develop customized vehicle galleries and watch videos on how to use features. Because dealerships are the primary channel of customer interaction with the company, Fiat Group Automobiles initiated a program in 2011 which aims to better understand customer needs related to their recent purchase and after-sales experiences. The objective is to more effectively respond to the needs they expressed. The program was initiated for all FGA dealerships in the principal European markets (Italy, France, Germany and Spain). It covers several phases, including measurement of customer satisfaction, customer involvement in defining the desired service, implementation of the requested actions and measurement of the efficiency of the new process as well as of the program itself. To achieve this, customers were requested to describe over the web their dealership experience and level of satisfaction with the service they received. By analyzing the results, it was possible to identify the behaviors and processes within the dealership which led customers to promote the brand or criticize it, or which led a passive customer to become a promoter.
The sales and after-sales processes were redesigned accordingly and dealership personnel will be trained on the procedures and new standards introduced. As a result of this ongoing dialogue with customers about their expectations, new services are continually being evaluated and developed. For example, Chrysler Group is expanding the number of dealers offering express service, which significantly reduces the time required for routine maintenance such as oil change, tire rotation and multi-point inspection. In 2011, the number of dealers offering express service increased significantly and growth will continue through 2014. In addition, dealers are increasing their service hours of operation to enhance customer convenience. In 2011, dealers offering Saturday service hours increased to 77% in the US. The focus in 2012 and beyond will be increasing the number of North America dealerships offering express service and extended service hours (weeknight and weekend hours). Accordingly, in order to support dealership needs, Chrysler Group also expanded its Mopar parts distribution and customer service hours.
Recall campaigns
A manufacturers responsibility does not end with the final sale to the customer, but continues throughout the entire life cycle of the vehicle. With this in mind, Fiat and Chrysler Group continue to monitor all aspects relating to vehicle safety during the after-sales phase. If technical problems relating to safety or regulatory compliance arise, recall campaigns are initiated to resolve the problem identified. In 2011, there were 73 recall campaigns involving approximately 1,640,000 Fiat Group Automobiles or Chrysler Group customers worldwide. The Best Service Campaign was launched for Fiat Group Automobiles clients to manage recall campaigns requiring repair to vehicles. Customers are notified through various channels of work to be performed on their vehicle and the process is managed to minimize inconvenience to the customer and vehicle downtime. The customers receive written notification
Social dimension
208
Social dimension
Customers
Transparency in communication
Responsible selling practices
Fiat Group Automobiles and Chrysler Group strive to facilitate the purchase and lease of new and used vehicles within the authorized dealer network. This is accomplished through FGA Capital (the joint venture between Fiat Group Automobiles and Crdit Agricole), which offers customers in 12 European countries a range of financial products and insurance services (Credit Protection Insurance, Car Insurance, Extended Warranties, etc.). FGA Capital has long been committed to providing responsible service in full compliance with applicable regulations, and with a strong focus on transparency and credit sustainability. To that end, in addition to targeted employee training, specific guidelines were produced and circulated in 2011 for FGA Capitals sales force and credit managers in Europe. The aim of the guidelines is to raise staff awareness of the importance of using clear and accessible language when offering nancing products. The focus on transparency in terms of credit availability and preventing over-indebtedness covers the entire life cycle of the financing products offered: from creation of the offer, to credit approval, to credit restructuring if the customer encounters financial difficulties and is unable to meet the commitments made. As part of the continual improvement process and to assess the effectiveness of actions taken, a special section of the customer satisfaction survey was included to measure the clarity and completeness of the information provided by sales personnel about credit services.
and are also contacted by telephone to be given additional information on the work to be carried out, the location of service centers and other services that may be available, such as the possibility of a replacement vehicle. Follow-up contact is also made to assess the customers level of satisfaction with the initiative. In 2011, the average satisfaction rating of Fiat Group Automobiles (FGA) customers managed through the Best Service Campaign was 9.1 (scale of 1 to 10).
Ethics in communication
Fiat Group recognizes the social role that advertising plays and has voluntarily adopted and encourages positive and responsible values and conduct in every form of communication. In 2011, Fiat Group Automobiles (FGA) published its guide to ethics in communication to promote a policy of responsible marketing and advertising in every market where it is present. Based on the applicable law and advertising standards in those markets, the guide sets out the fundamental principles that are to be applied in communication activities carried out by all those who work in or with FGA, such as advertising agencies. The core values underlying the guide reflect FGAs guiding principles of respect, honesty and responsibility. The guide was drafted in clear, straightforward language to ensure that it could be readily understood and applied by everyone. The Group is also an active member of the Unione Pubblicitari Associati UPA (the association of advertisers in Italy), which supports the Istituto di Autodisciplina Pubblicitaria (Italian institute for advertising standards), and is also a member of the European Advertising Standards Alliance.
209
Vehicle quality
Fiat Groups interaction with customers includes extensive research to gain an understanding of market needs and desires, and to ensure the company delivers vehicles that
exceed consumers quality expectations. As part of the alliance between Fiat(1) and Chrysler Group, the company is continuing to invest in quality improvements and is creating a stronger, worldwide quality organization. Across the Group, a dedicated cross-functional team is working on a coordinated strategy. A number of global quality initiatives are being evaluated, including the development of new common standards and methods based on competitive benchmarks. Providing high-quality vehicles is a key driver of the Groups product strategy, and many tools are used to improve a vehicles performance quality, such as surveys and clinics that collect and prioritize customer desires, assessments of competitive vehicles, vehicle teardowns and third-party data. The Quality team benchmarks approximately 320 physical characteristics of best-in-class vehicles. Criteria such as acceleration, braking, handling, seat comfort, storage space, fuel economy and visibility are measured so that Group products can be designed to compete with the best. In addition, Fiat Group uses an overall measurement of customer satisfaction called the Customer Promoter Score (CPS). CPS is an internal monthly tracking system that measures customers willingness to recommend their vehicle to a friend or family member. Customers are surveyed at potentially seven points during the first five years of ownership through a combination of time-triggered and event-triggered transactions. The results of the Groups quality efforts have been significant: in 2011, the Group reduced the rate of repair in the first 90 days of ownership by 10% to 20%, depending on the model. Best-in-class standards are also adopted at the manufacturing phase. In fact, all Group manufacturing plants have adopted a Quality Management System Certification compliant with ISO 9001:2008. In addition, Fiat Powertrain plants in Europe are also ISO / TS 16949:2009 certified.
(1)
Social dimension
210
Social dimension
Suppliers
Suppliers
Fiat Group considers its suppliers strategic partners for growth and competitiveness in a relationship that goes beyond the purely commercial sphere. The Group believes that it is a duty of large organizations to promote the values of responsibility and sustainable development throughout their supply chain. Fiat Group is committed to developing a lasting business relationship with those suppliers that not only satisfy its requirements for quality, price and reliability, but that also share its principles and business approach.
In October 2011, Group Purchasing was created as a new organization consistent with the objective of enhancing the operational integration of Fiat(1) and Chrysler Group. Group Purchasing is responsible for setting global purchasing strategies, ensuring the achievement of common objectives in accordance with Fiat and Chrysler Group business targets and developing the integration of global processes and implementation of a Supplier Quality System. In 2011, Group Purchasing confirmed its commitment to promoting socially and environmentally responsible practices by suppliers and raising employee awareness of these issues. The information related to the model for sustainable management of the supply chain was assessed by SGS with a high level audit in accordance with the AA1000 Assurance Standard.
Supplier prole
Group Purchasing manages purchases of around 46 billion and has a supplier base of approximately 2,300 companies with a high level of concentration: the top 60 suppliers produce 57% of total purchases by value.
Highlights
Group Purchasing worldwide
Direct and indirect material purchases managed by Group Purchasing (2) (% of total Group purchases) Direct material suppliers (no.) Concentration of direct material purchases (% of purchases from top 60 suppliers) Value of purchases from direct material suppliers (3) ( billion) Value of purchases from indirect material suppliers (4) ( billion)
(1) (2) (3) (4)
Fiat refers to Fiat Group excluding Chrysler Group. Refers to the monetary value of purchases managed by Group Purchasing. Direct materials are pre-assembled components and systems used in assembly. The value of raw material purchases is considered marginal. Indirect materials are services, machinery, equipment, etc.
211
Approximately 49% of direct material purchases by value are for plants in North America, 26% for plants in Europe and 25% for Latin America. Accordingly, the location of direct materials suppliers is approximately 41% in North America, 29% in Europe, 26% in Latin America and 4% in Asia. Although Fiat Group does not purchase raw materials directly
(with the exception of steel used for direct processing), overall consumption and price trends are monitored. The principal raw materials used in semi-finished goods purchased by the Group are steel (approx. 2.6 million tons including scrap), cast iron (approx. 636,000 tons) and light alloys (approx. 300,000 tons).
Asia
North America
Mechanicals
Metals
4%
41%
5%
43%
Latin America
Europe
Electricals
Chemicals
26%
29%
24%
28%
North America
Conict minerals
The Group recognizes value in working with peers to address global challenges across the automotive supply chain. In particular, Chrysler Group in 2011 worked through the Automotive Industry Action Group (AIAG) to develop training on global working conditions and formulate strategies to address the Dodd-Frank legislation aimed at tracing the sources of certain minerals that may originate from the Democratic Republic of Congo and surrounding countries. Should the regulations implementing this legislation be nalized, in 2012 Fiat Group plans to develop a template for its suppliers to report their source(s) for these minerals. The Group will also begin to promote the sourcing of parts and components utilizing conict-free minerals.
49%
Latin America
Europe
25%
26%
(1)
Refers to the monetary value of direct material purchases managed by Group Purchasing.
Social dimension
212
Social dimension
Suppliers
213
Supplier diversity
Chrysler Group continues to be a leader in promoting supplier diversity. Established in 1983, the Diversity Supplier Development (DSD) group focuses on developing and maintaining a qualified, diverse supply base. This enables achievement of diversity sourcing goals and commitments to the communities in which the company does business. Accordingly, minority-owned enterprises are provided with opportunities and the information they need to do business with the Group. In 2011, Chrysler Group increased its expenditure with minority-owned businesses from 13.8% to 15.7%, an increase of 412 million. Two significant new programs launched in 2011 demonstrate this commitment: High Focus program In 2011, DSD implemented a quadrant analysis as the basis for its High Focus program to encourage Tier 1 suppliers to reflect Chrysler Groups value of supplier diversity. The High Focus program assists Tier 1 suppliers in developing sustainable supplier diversity strategies through mutually beneficial access to Women and Minority Business Enterprises (W/MBEs) in the US and internationally. W/MBE Mentoring program In 2011, in partnership with General Motors Company and Ford Motors Company, Chrysler Groups DSD team launched an enhanced mentoring program. This program not only helps identify areas for improvement for W/MBEs, but also provides coaches to assist in implementing these improvements. Additionally, the supplier assessment tools used in the new mentoring program will raise awareness of W/MBEs that are ready to progress to the next level to become potential Tier 1 suppliers.
Monitoring conformity
In order to verify adherence by suppliers to the Groups sustainability standards and, where necessary, take steps for improvement and realignment, Group Purchasing has in place a monitoring process that consists of two main tools: self-assessment questionnaires on sustainability standards and follow-up on-site audits. The questionnaire queries suppliers on human rights; environmental and health and safety practices; ethics and anti-corruption; and people training and development. It also serves as a gap analysis tool for suppliers, highlighting areas that need improvement. In 2011, self-assessment questionnaires were answered by about 1,235 suppliers accounting for roughly a further 37% of purchases by value managed by Group Purchasing during the year. This was in addition to the 362 suppliers already taking part in 2009 and 2010. Suppliers who completed the questionnaire attained an average score of 87/100.
Social dimension
214
Social dimension
Suppliers
An analysis of the results essentially confirmed the previous years findings of widespread implementation of good social and environmental practices: a significant proportion of suppliers have their own environmental and social management system, set targets in these areas and prepare periodic reports. Following the self-assessment process, audits were conducted on a selection of key suppliers. Continuing last years activities, a further 51 audits were performed in Europe, China and India. These audits did not reveal any particularly critical situations: no contracts were suspended or canceled and no suppliers were placed on watch status. However, corrective action plans for certain areas considered in need of improvement were formulated in collaboration with suppliers. In 2011, as a result of the audits conducted, a total of approximately 70 joint action plans were initiated for about 40 suppliers. Also involved in the formulation of these plans was the
Supplier Sustainability Committee set up within Group Purchasing. The committee is composed of the Compliance Officer, General Counsel and the head of Supplier Quality Engineering. The plans primarily addressed the need to develop standards in the areas of corporate governance and human rights, in particular the adoption of a Code of Conduct, the appointment of a sustainability officer and the promotion of responsible behavior within their own supply chain. The level of a suppliers compliance and the action plans required are reported in the Supplier Quality Performance system. These results can be viewed by all employees assigned to managing suppliers. In 2011, a risk map was prepared to identify the critical suppliers whose compliance with sustainability criteria requires evaluation. The four risk drivers used to create the risk map were: supplier turnover; country risk associated with the suppliers location, focusing on countries with
215
Self-assessment questionnaires
Group Purchasing worldwide
Suppliers sent self-assessment questionnaires (no.) Suppliers responding to questionnaire (%) Average score Purchases (3) by value covered by questionnaires (%) Audits
Group Purchasing worldwide
Sustainability audits (no.) performed by Group personnel (Supplier Quality Engineers) performed by a third party Purchases (3) by value covered by audits (%)
2011(1) 51 37 14 1
2010 (2) 65 50 15 12
2009 (2) 26 26 11
poor human rights records; supplier financial risk; and the outcome of the assessment of the suppliers adherence to the principles of sustainability conducted in previous years through self-assessment questionnaires and/or on-site audits. The risk map classifies suppliers according to three levels of risk: high, medium and low.
Culture of sustainability
Various initiatives have been established over the years to ensure adequate awareness of sustainability and good governance by those who manage supplier relationships. The online training program aimed at raising awareness of the Group Code of Conduct will continue in 2012. It targets Group buyers and Supplier Quality Engineers (SQE). Between 2010 and 2011, more than 800 employees took part. In 2012, the program will be completed by all Fiat buyers and SQEs in Poland, Turkey, Brazil, China and India and Chrysler Group SQEs and buyers in Europe, China, India and South Korea. Also in 2011, the variable compensation system for SQE managers and their staff included sustainability criteria, such as audits and selfassessment questionnaires management. Chrysler Group will adopt the same type of program in 2012.
Data includes Chrysler Group for the full year. Data refers to Fiat Group pre-demerger and accordingly includes Fiat Industrial and not Chrysler Group. Value of direct material purchases managed by Group Purchasing.
Social dimension
216
Social dimension
Suppliers
At Chrysler Group, monthly Supplier Town Hall meetings, which are attended by an average of 400 suppliers either in person or via the web, continued to be a major enabler of two-way communication. Also on the theme of continuous improvement, World Class Manufacturing Purchasing, in collaboration with the World Class Manufacturing (WCM) team organization, continued its work as a consultant to suppliers intending to implement the WCM system. During the year, WCM was implemented at additional supplier plants for a total number of 174 supplier sites now applying what is considered to be one of the worlds leading manufacturing standards. A total of seven Executive Conventions have been held with the purpose of examining the current state of program applications and driving senior management commitment. At Chrysler Group, approximately 300 supplier plants have participated in specialized training programs with the goal of extending the basic principles of WCM throughout the supply chain.
Finally, the Group encourages supplier innovation through various initiatives. Supplier Performance (Su.Per) is a program aimed at encouraging a proactive approach from suppliers, by sharing with them the economic benefits generated through the introduction of innovative methods and technologies that they propose. In 2011, approximately 50 suppliers benefited from this program (30 in 2010). Of the numerous proposals received, around 220 have been implemented. In May 2011, Chrysler Group launched the Supplier Innovation Gateway with the goal of stimulating innovative ideas that lead to benchmark systems. The gateway creates a streamlined process to review, investigate and approve supplier innovations. To address existing or emerging sustainability issues, in 2011 Chrysler Group created the Supplier Sustainability Panel. This stakeholder group represents a cross section of the supplier base with participants from companies of different sizes, footprints and commodities. Topics addressed
217
include ways in which the Group and its suppliers can work together on sustainability initiatives, gap assessment and resolution, as well as training and communication throughout the supply chain. Dedicated email addresses (sustainability_supplychain@ at.com, sustainability@chrysler.com) represent another channel of communication through which the Group enables people to request information or report events or situations of non-compliance in the supply chain.
situations and contribute to stabilizing them through the implementation of the most suitable measures. This may involve measures to ensure supply continuity, providing support for restructuring plans and, where necessary, temporary cash-ow support, also with the objective of saving jobs where possible. In some cases, such actions have been taken jointly with other automakers. Several natural disasters impacted the automotive industry in 2011. In each event the Group has acted as a partner with its supply chain to contain and remedy supply constraints. For example, Fiat Group formed a task force following the Japan tsunami that resulted in risk mitigation strategies to significantly reduce the impact of component shortages. The task force structure and lessons learned were also deployed following regional flooding and the Thailand monsoons to mitigate risk to production operations across the Group.
Social dimension
Stefano Guindani
Communities
Social dimension
219
Communities
Fiat Group recognizes that being a good corporate citizen means actively working to establish a positive, long lasting relationship with the communities in which it operates. Through a variety of dedicated initiatives, the Group is committed to supporting the economic, social and cultural development of the areas where it does business, and works to increase dialogue with local stakeholders.
Activities focused on a variety of causes: 55.2% promoted education, culture and art; 22.2% were for social welfare projects (addressing issues such as disability, eldercare, etc.); 9.4% were for emergency relief; and 13.2% were for other areas including health. From a regional perspective, the majority of the Groups investments was concentrated in Latin America, which accounted for 63.2% of the total resources donated. Europe follows, accounting for 25.3% of investment, with the remainder donated in North America (7.5%), and rest of world (4%).
Type of initiatives
Fiat Group worldwide
85.4%
6.6%
66.7%
24.7%
Management of initiatives(3)
5.8%
Donations in-kind Commercial initiatives with social impact
2.2%
8.6%
(1) Based on non-accounting data and calculation methods. Also includes estimates. Amounts in currencies other than euros were converted at the average annual exchange rate as of 30 November 2011. The reported gure does not include initiatives whose sole purpose is to promote a brand. Amounts refer to all Fiat Group companies worldwide. Chrysler Group data refers to the full year. (2) Data represents the monetary value of hours for volunteer work carried out by employees during work hours (also includes initiatives where companies are fully or partially reimbursed through public funds). (3) Data represents the monetary value of time dedicated by employees for managing, organizing and reporting local community initiatives.
Social dimension
Donations in cash
Charitable donations
220
Social dimension
Communities
Area of intervention
Fiat Group worldwide
Destination of initiatives
Fiat Group worldwide
25.3%
Latin America
55.2%
22.2%
63.2%
North America
7.5%
Emergency relief
9.4%
Rest of world Other support
(1)
Health
6.6%
6.6%
4.0%
According to the Fiat S.p.A. Code of Conduct Fiat Group seeks to contribute to the social, economic and institutional development of local communities through specific programs. Employees are asked to behave in a socially responsible manner by respecting the cultures and traditions of each country in which the Group operates and acting with integrity and good faith in order to merit the trust of the community.
Human Resources managers at the site level interact and maintain dialogue on a continual basis with community representatives and local authorities in order to assess needs and expectations as well as observe the impacts of company industrial activities. Every initiative is managed at the plant, sector and brand level, and those that are financially significant are approved and supervised at the corporate level.
(1)
Other support also includes investments in favor of economic development and the environment.
221
A portion of the Group charitable activities is managed by The Chrysler Foundation, which supports a wide variety of charitable and community-based local and global organizations. The Foundation is an independent, nonprofit organization sponsored exclusively by Chrysler Group and is governed by its own Board of Trustees consisting of six corporate executives. Fiat Group Community Investment Guidelines provide indications on how to manage the various initiatives to benefit communities and define the commitment to implementing initiatives that are consistent with each brands core characteristics and positioning. Specic indicators are used to measure the impact of all major initiatives in order to evaluate the benefit for the local community. This helps to ensure that the Groups activities remain aligned and relevant to the current needs of the regions involved. In addition, these metrics assist in evaluating potential opportunities for development or extension of programs, as well as turning successful isolated activities into longer-term commitments. Following are details about a few of Fiat Groups 2011 initiatives, chosen for their distinctiveness and their economic or social significance.
simulators designed to measure residual ability, as well as specially equipped cars for dynamic vehicle testing. Thanks to the comprehensive approach of the Autonomy program, customers are able to enjoy personalized roadside assistance service, with on-site repair of the car where possible, or towing and a replacement vehicle/ logistics support to help customers return home or continue their journey. Interested customers also had the chance to attend lessons on safe driving with professional instructors. However, the best evidence of the Autonomy programs effectiveness and interest is demonstrated by the 1,500 people who benefited from Mobility Center services in 2011 (+200% over 2010) and by the number of cars sold in Europe and Brazil, totaling approximately 14,700. The search for innovative solutions allowing complete freedom of movement for everyone is combined with another of Autonomys important commitments: the fight against prejudice and stereotypes. Also in 2011, this meant providing support for sporting events such as the Disabled Alpine Skiing World Cup held at Sestriere (Turin),
Social dimension
222
Social dimension
Communities
and the final of the European Handbike Championship in Parabiago (Milan), leading to qualification for the London 2012 Paralympic Games. Autonomy also organizes sports promotion events every year to give everyone, not just champions, a chance to indulge their sporting passions. Autonomy is not the only initiative through which the Group provides mobility for people with reduced motor ability. Chrysler Groups Automobility program was launched in 1987 to help customers with permanent disabilities get in
and out of, and/or operate, a new vehicle. The financial assistance program helps cover up to 700 of the outof-pocket expense for installing adaptive driver or passenger equipment on most Chrysler, Jeep, Dodge, Ram or Fiat vehicles. In addition, it helps customers locate assessment centers and vehicle modifiers or adaptive equipment installers to ensure new products meet their needs. In the past 10 years, Chrysler Group has provided financial assistance to over 75,000 Automobility customers.
United Way
Chrysler Group and United Way have nurtured a longstanding relationship built upon the shared goal of contributing meaningfully and sustainably to people and communities in need (www.liveunited.org). United Way is an NGO operating in 45 countries worldwide, and is committed to improving living conditions in local communities, focusing in particular on education, financial stability and health. More precisely, United Way has shared with Chrysler Group its commitment to helping children and young people achieve their potential through education, school readiness, academic achievement and the awareness that quality education is the basis for stable employment. On the income side, the organization has set up initiatives to help families become financially stable and independent, providing advice on maximizing income, increasing savings and creating financial assets for long-term stability. The health-related initiatives, meanwhile, focus in particular on maternal health and infant well-being, healthy youth development, health care coverage and preventive health. Thanks to the generosity of the company and employee pledges, including UAW and CAW trade union(1) workers, in 2011 more than 3.3 million was donated to United Way campaigns in the US and Canada. In addition, Chrysler Group employees volunteered their time for a number of organizations supported by United Way. For example, during the 2011 holiday season, employees donated and delivered several tons of food to area food banks in many US communities where the company operates. Overall, the Thanksgiving food drives helped feed an estimated 12,000 people.
(1)
International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) and Canadian Auto Workers union (CAW).
223
rvore da Vida
The high quality of social dialogue established by the company with communities in the various countries where it operates is witnessed in Brazil, in the many initiatives launched as part of the rvore da Vida program. Since 2004, it has aimed to promote social, cultural and economic development, encouraging autonomy and empowerment of people and their communities. In 2011 alone, Fiat Group Automobiles (FGA) committed approximately 9 million for the rvore da Vida program. Since it arrived in Brazil over 30 years ago, Fiat has created initiatives to respond to local needs and demands. The program strategy is the result of close collaboration with local institutions and the NGOs ASVI and CDM. In order to continue its commitment to stakeholder needs and expectations, the organization established the Social Development and the Entrepreneurs Networks of Jardim Terespolis, with a core group of community leaders, in order to analyze community problems and take action to solve them. One of the most important initiatives focuses on the Jardim Terespolis community located in front of FGAs Betim plant. This community is home to approximately 40,000 people whose extreme social vulnerability is reflected in high
levels of illiteracy, violence, crime and unemployment. The company has contributed to the territorial development of Jardim Terespolis by organizing various cultural activities, socio-educational initiatives and sporting events. Thanks to these projects, the communitys own resources have become the main factor in successful local growth. The result has been a significant, progressive reduction in social problems. Since 2004, school attendance in the community of Jardim Terespolis has risen from 78% to 94%, and the number of pupils finishing school from 71% to 96%. The program also promotes conditions for social change through a professional training program, now available in seven Brazilian states. This encourages young people to acquire automotive technical know-how and contributes to the implementation of national policies for youth training and job creation. Since 2006, about 500 young people took part in the program, which provided them with easy access to the labor market, as reflected in their 90% employment rate. Extending its involvement with its host city of Betim, the company is also the force behind the creation of the
Social dimension
224
Social dimension
Communities
Nossa Betim Movement, launched in late 2010. This initiative mobilizes and coordinates the various segments of society to build and commit to an agenda of goals for continuous improvement of the citys quality of life and equitable, sustainable and environmentally responsible development. Discussion groups and forums work to establish sustainable objectives in fields such as child and youth education, culture, housing, urban mobility, health and security. Other Group companies have also been actively involved for many years in projects supporting communities in Brazil, including literacy programs and training courses, sport and music orientation activities, support for schools and food aid for the most disadvantaged families. Moreover, during 2011, over 4,700 employees offered their time, expertise and knowledge collaborating with ten nonprofit organizations, totaling approximately 18,200 volunteered hours. Over the years, FGA has received a number of accolades for its initiatives implemented in Brazil, including the Cidados do Mundo 2011 award from the newspaper Hoje em Dia, in the Corporate Social Responsibility category.
225
specific task and are asked to build a robot to perform it. Teams have six weeks to design, build and test their machines under the supervision of mentors. In 2011, Chrysler Group also launched a new program exploring internship opportunities for FIRST Robotics alumni currently studying engineering at the university level. This extension of the student-mentor relationship into college years provides the company with access to a skilled and talented pool of potential future employees. Fiat Group Automobiles (FGA) is also actively involved in providing support for the training of young people. During 2011, FGA and the Salesian Professional Training Centers (CNOSFAP) continued working together on the TechPro 2 project (www.techpro2.com), a professional development program aimed at recruiting and training highly technically qualified young people for employment in the automotive industry. By delivering specific technical training to young people who have reached the minimum school-leaving age, often from disadvantaged areas or difficult social backgrounds, TechPro 2 answers the need for highly specialized technical staff at Fiat, Alfa Romeo and Lancia, as well as at Fiat Professional dealerships and authorized service centers. The three-year educational program consists of both theoretical and practical training at the Salesian Professional Training Centers (designed, renovated and equipped by FGA to the standards and regulations the Group applies to its own network). At the end of the second and third years, the course is completed with an apprenticeship or placement in the FGA service network. This allows the young people involved to develop a firm set of technical and professional skills, while also gaining useful hands-on experience. The international dimension of the project was further developed during the year and the number of TechPro 2 locations grew to a total of 51. Approximately 2,600 students took part in the training program in 2011 (+68% over 2010), which in total provided around 1.6 million hours of training in seven different languages. FGA aims to continually improve the project, using skills
testing to monitor the teaching staffs knowledge of processes and products. Further significant progress in this direction has been achieved by developing and distributing specific guidelines for the project aimed at standardizing the approach and types of training offered around the world. These guidelines enable project standardization and monitoring while ensuring continuous dialogue between professional schools, local dealerships and specialized service centers in order to serve specific local needs. The main goal in 2012 is to intensify communication and contact opportunities between the project centers and the authorized network, in order to further promote the internship program for students that have completed their training. In 2011, there were 278 placements for second- and third-year Italian students, 36% of which were at dealerships and FGA authorized service centers (source: Salesian Study Center, 2011). A survey carried out by the Pontifical University in Rome on a sample of Italian students taking part in the project
Social dimension
226
Social dimension
Communities
confirmed its effectiveness. The survey found that three years after completing the course, 52% of participants were working, while 34% had continued with their studies. TechPro2 also organizes various other initiatives, such as the TechPro2 award, in which the best students are invited to take part. The competition involves identifying failures in cars and performing correct diagnostics, maintenance and repair. Participants are then asked to answer questions from the technical committee on company products and diagnostic devices. The winner is the person who shows the best theoretical knowledge and practical ability.
227
environmentally sustainable. This can be seen in the structure itself, which is entirely surfaced in porcelain stone specially treated to capture CO2 emissions, and in the ventilated facade system, which ensures optimum internal temperature control throughout the year using natural methods. The year 2011 also saw the completion of the rehabilitation center for disabled children and young amputees in Petionville, in the heart of Haiti, so badly hit by the 2010 earthquake. The Kay Eliane center, built by the nonprofit association Fondazione Francesca Rava N.P.H. Italia (www.nphitalia. org) with funding from the Fiat Group, aims above all to offer care and education to Haitis disabled and disadvantaged children. The facility provides services for around 50 daypupils, as well as being used by many others who come for a hot meal or to take part in the physiotherapy and educational activities organized by the staff of specialists.
Social dimension
iStockphoto.com/Jason Verschoor
Appendix
Guide to the Report Materiality and stakeholder inclusiveness Further details Statements of assurance Index of GRI-G3.1 content Fiat on social networks Other corporate publications and web Contacts
230
Appendix
Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. with respect to year 2009, data does not include Chrysler Group as Chrysler Group LLC was first formed in midyear 2009. Also, Fiat Industrial S.p.A. data was removed. Accordingly, 2009 data is not comparable to 2010 and 2011 The exclusion of any geographical area, or Group company or specific site from the scope of reporting is attributable to the inability to obtain data of a satisfactory quality or their immateriality in relation to the Group as a whole, as may be the case for newly-acquired entities or production activities that are not yet fully operational. In some cases, entities that are not consolidated in the financial statements have been included in the scope of reporting because they have significant environmental and social impacts. In particular: data on occupational health and safety relates to 146 of the 155 plants included in the Consolidated Financial Statements (covering approx. 96% of plant workers),(2) to four plants of companies that are not fully consolidated (including the Sevel and Tofas joint ventures) and to office facilities (in total covering approx. 93% of overall Group employees) the Groups environmental and energy performance refers to 146 of the 155 plants included in the Consolidated Financial Statements (covering over 98% of the Groups industrial revenues)(3) and four plants of companies that are not fully consolidated (including the Sevel and Tofas joint ventures)
(1) The Global Reporting Initiative (GRI) is a multi-stakeholder process for development and disclosure of guidelines for sustainability reporting. The guidelines set out principles and indicators for reporting on the economic, environmental and social dimensions and represent a standard for content to assist the organization in the preparation of the Sustainability Report, enabling comparability over time and between similar organizations. In addition to establishing principles for the preparation of sustainability reports, the GRI-G3.1 guidelines dene content which is broken down into: strategy and analysis, prole of the organization, Report parameters, governance, stakeholder inclusiveness, and economic, environmental and social performance indicators. (2) Plant workers are dened as all the employees located at a particular site including workers assigned to manufacturing and other associated units (quality control, logistics, etc.), and to research and development. (3) Revenues attributable to activity of plants directly controlled by the Group.
231
Data has been collected and reported with the aid of existing management control and information systems, where available, in order to ensure reliability of information flows and correct monitoring of sustainability performance. For certain indicators, a dedicated reporting process has been established using electronic databases or files that are populated directly by the individual or entity responsible for each aspect worldwide.
Quality of information
The quality of the information contained in the Sustainability Report is supported by compliance with the following principles: materiality: inclusion of all information deemed to be of interest to stakeholders due to its economic, environmental or social impact completeness: inclusion of all material issues and indicators balance: coverage of both positive and negative aspects of the Groups performance comparability: ability to compare between time periods and with similar organizations accuracy: provision of adequate levels of detail reliability: reporting process subject to audit by an independent organization timeliness: Report made available together with the Annual Report at the Annual General Meeting of Fiat S.p.A. clarity: the language used is directed at all stakeholders Preparation of the Sustainability Report is part of an annual reporting process subject to audit, analysis and approval by a number of individuals and entities. The document is: prepared by the Sustainability Unit that centrally coordinates and engages Group sectors and the relevant functions approved by the Group Executive Council, the decisionmaking body headed by Fiat S.p.A.s CEO and composed of the CEOs of the operating sectors, the heads of each of the Groups operating regions and various functional heads examined by the Nominating, Corporate Governance and Sustainability Committee, a sub-committee of the Board of Directors of Fiat S.p.A.
subject to an assurance audit by SGS Italia S.p.A.,(1) an independent certification body, in accordance with the Sustainability Reporting Assurance procedure (SRA), in compliance with the GRI-G3.1 guidelines and the AA1000 APS (2008) standard. SGS is officially authorized to conduct AA1000 assurance audits. In addition, as of this year the Groups sustainability management system is aligned with ISO 26000 Guidance on social responsibility, published in November 2010. The statement of assurance, which describes the activities carried out and the opinion expressed, is provided on page 254 presented together with the Annual Report at the Annual General Meeting of Fiat S.p.A. to provide a complete, upto-date overview of the Groups financial, environmental and social performance published and freely available for download from the sustainability section of the Group website (www.fiatspa.com). The 2010 Sustainability Report was made available at Fiat S.p.A.s Annual General Meeting on 30 March 2011
(1) The Chief Executive Ofcer of Fiat S.p.A., Sergio Marchionne, is Chairman of the Board of Directors of SGS S.A. In addition, John Elkann, Chairman of the Board of Directors of Fiat S.p.A., was appointed as a non-executive director of the Board of Directors of SGS S.A.
Appendix
232
Appendix
The subjects addressed in the Sustainability Report have been chosen on the basis of an analysis that takes into account the information needs of stakeholders concerning the actions taken and results achieved by the Group in the areas of economic, environmental and social sustainability, and of the requirements of the principal international reporting standards and the specific characteristics of the automotive industry. Significant attention has also been given to the information requirements of Socially Responsible Investors (SRI) and financial analysts who periodically analyze the Groups sustainability performance. The contents of the Report therefore reflect the need to satisfy these requirements and also benefit from the results of regular benchmarking against the main players in the automotive industry. The areas discussed in this Report (governance, sustainable mobility, manufacturing processes, human resources management, relationships with local communities, dealer and service network, customers and suppliers) are organized into four principal sections. The first illustrates the Groups strategic approach and commitment to sustainability, followed by the economic, environmental and social sections that describe the 2011 performance and activities. The last section provides the guide to the Report, the map of stakeholders and additional economic, environmental and social indicators.
233
Families of employees
Institutions
Communities
Trade unions
Media
234
Appendix
Stakeholder
Stakeholder expectations
References (pages)
Institutional Relations Public institutions: government, local authorities, public agencies, regulatory bodies, EU institutions, trade associations and nongovernmental organizations The Environment Environment
periodic ad hoc meetings on corporate objectives and decisions participation in working groups, development of joint projects and alliances ad hoc involvement initiatives to promote environmental issues dialogue with institutions and environmental associations community Town Halls dialogue with government agencies on development of regulations industry groups daily dialogue people satisfaction surveys meetings to communicate expected and actual performance level and professional development path employee Town Halls Employee Resource Groups (ERG) Diversity Work Streams meetings to share and align corporate objectives and decisions participation initiatives (Childrens Christmas, Family Day, etc.) targeted initiatives (nursery school, scholarships programs, company-provided health plans)
responsiveness and proactiveness towards projects presented collaboration and access to information technical support on specic industry-related issues
18-19, 23-25, 66-69, 82-86, 105-106, 110-111, 125-127, 131, 160-166, 178-181, 184-188, 190, 208, 250 16-22, 25-30, 32, 76-89, 93-111, 113-139, 238-245
inclusion of environmental aspects in business strategies (combating climate change) strengthening of environmental management through: dedicated organizational structure, environmental performance monitoring systems, management objectives and action plans clarity of organization and protection in periods of market uncertainty clarity of objectives and reward system information on Group strategies and results training and professional development stimulating and safe work environment promoting diversity and inclusion in the workforce indirect participation in the decision-making process developing sense of belonging access to information indirect participation in corporate life
Employees
Human Resources
169-171, 181-183
Industrial Relations
institutional meetings (European Works Council EWC) and other meetings at all levels (plant/company, regional/national) pursuant to legal or contractual provisions trilateral meetings (company, trade unions and government bodies) on matters of particular importance ad hoc meetings at plant, company, regional or national level daily contacts and periodic meetings with the network two-way communication through the web and dedicated phone lines individuals responsible for monitoring the network and ensuring fulllment of contractual standards dealer development programs programs to support dealers and potential dealers, including training, denition of standards, nancing and promotional campaigns market research (concept test, clinic test, image and awareness survey, focus group customer satisfaction surveys (sales and after-sales) above and below-the-line communication channels two-way communication through: web, social media (twitter, facebook, blogs), direct mailing, dealerships, toll-free numbers, etc. events (product launches, etc.) and participation in exhibitions, trade fairs and conventions owner events sponsorships
social dialogue in line with the applicable legal or contractual provisions under which from time to time and dependent on the country, the matters at issue and the level of dialogue trade unions or employee representatives are entitled to information, consultation and/or negotiation
Sales
complete and rapidly accessible product information business protability developing sense of belonging quality and availability of products/parts/services competitive prices expansion of product lines expansion of nancial and non-nancial services offered support services for dealers and rapid response to breakdowns quality, reliability and safety of products competitive prices and availability of credit sustainability in business choices and product development (reduced consumption and emission levels, access to restricted areas, possible utilization of state and regional incentives) speed and efciency of assistance professionalism and courteousness in direct contacts and through dealers expansion of nancial and non-nancial services offered developing sense of belonging
(1) The names provided in the index for corporate functions have, in some cases, been altered to make them more self-explanatory and, therefore, do not necessarily coincide with the ofcial name given to the corresponding activity or area of responsibility.
235
Stakeholder
Corporate function
Stakeholder expectations
References (pages)
Purchasing
daily relationship through buyers conventions technology days supplier Town Halls training programs sector groups other specic supplier engagement meetings with representatives of associations, organizations and local communities initiatives, managed directly or in partnership collaboration on R&D projects cultural exchange programs dialogue with universities participation on Board of Directors of organizations shareholder meetings price-sensitive communications and information quarterly conference calls seminars, industry conferences, roadshows and investor meetings daily dialogue (meetings, telephone, email) Investor Relations section of the Group website daily dialogue presentations and press conferences other events (product drives/launches, plant investment events, auto shows, etc.) meetings Group and sector websites
Miscellaneous entities Local communities: religious, cultural, professional, socio-political, scientic and technological research, health system, schools and universities, NGOs, nonprot organizations Financial community: traditional and Socially Responsible Investors Investor Relations, Corporate Affairs and Sustainability Unit
responsiveness to project proposals and individual requests for assistance contributions and support for initiatives over mediumto-long term satisfaction of tender requirements for R&D projects access to information shared responsibility expand and reinforce knowledge of the Group and its sectors value creation (return on investment, sustainability of the business) transparent and responsible management
Communications
www.atspa.com
Consolidated 2011 revenues Income of nancial services companies Government grants (current and deferred/capitalized), release of provisions, other income Other income Direct economic value generated Cost of materials Depreciation and amortization Other expense Value added
2011(1) 59,559 (235) 886 650 60,860 (46,528) (3,358) (1,038) 9,936
Employees
6,320
Finance providers
1,557
1,108
735 181
Communities
35
Shareholders
(1)
Data refers to Fiat Group including Chrysler Group starting from June 2011.
Appendix
236
Appendix
Further details
Further details
Economic dimension
Highlights by sector
Fiat Group Automobiles
( million)
Net revenues Trading prot/(loss) Investments in tangible and intangible assets Total R&D expenditure (1) Employees at year end (no.) Passengers cars and light commercial vehicles shipped (2) (no.) Maserati
( million)
Net revenues Trading prot/(loss) Investments in tangible and intangible assets Total R&D expenditure (1) Employees at year end (no.) Vehicles shipped (2) (no.) Ferrari
( million)
Net revenues Trading prot/(loss) Investments in tangible and intangible assets Total R&D expenditure (1) Employees at year end (no.) Type-approved vehicles shipped (2) (no.) Chrysler Group (3)
( million)
Net revenues Trading prot/(loss) Investments in tangible and intangible assets (4) Total R&D expenditure (1) Employees at year end (no.) Vehicles shipped (2) (no.)
(1)
Data includes capitalized R&D and R&D charged directly to the income statement. Shipped: new cars and Light Commercial Vehicles invoiced to external customers (i.e., dealer network, importers, rental companies, corporate eets, government agencies and local authorities, etc.). (3) Consolidated from June 2011. (4) Net of vehicles leased out.
(2)
237
Fiat Powertrain
( million)
Net revenues Trading prot/(loss) Investments in tangible and intangible assets Total R&D expenditure (1) Employees at year end (no.)
Magneti Marelli
( million)
Net revenues Trading prot/(loss) Investments in tangible and intangible assets Total R&D expenditure (1) Employees at year end (no.)
Teksid
( million)
Net revenues Trading prot/(loss) Investments in tangible and intangible assets Total R&D expenditure (1) Employees at year end (no.)
Comau Net revenues Trading prot/(loss) Investments in tangible and intangible assets Total R&D expenditure (1) Employees at year end (no.) 2011 1,402 10 20 14 14,457 2010 1,023 (6) 24 12 12,216 2009 728 (28) 13 10 11,708
Appendix
( million)
(1)
Data includes capitalized R&D and R&D charged directly to the income statement.
238
Appendix
Further details
Compliance(1)
A summary is provided below of the final court judgments, final arbitration awards and other final orders deemed material because of their value and for which a final decision was awarded in 2011 against Fiat Group companies (final judgments). There were no significant final judgments concerning breaches of legislation governing environmental protection, unfair competition, antitrust, intellectual property, advertising and marketing, product and service information, data protection or liability for damages arising from defective products, or relating to breaches of the rights of local communities. Final judgments were, however, given against Fiat Group companies in relation to the following: a few product failures and lemon law cases entailing compensatory damages or the buyback of vehicles for a total amount not exceeding 230,000 three cases of contractual liability (a litigation suit in Portugal regarding certain disputed payments for transport services, for approximately 2 million, and two dealer lawsuits in Germany, for an amount totaling less than 380,000)
There were also certain matters in which non-final judgments against Fiat Group companies were handed down. Such matters are still pending and their final outcome remains uncertain. They include: two cases of non-contractual liability arising from the improper use of personal data and personal image in press articles (10,000, in total) three cases of contractual liability (two dealer lawsuits, one in Brazil and one in Spain, and a dispute relating to the allocation of damages to goods in transit) for a total amount of less than 2,600,000 Lastly, final judgments given in 2011 in relation to labor and social security law against Fiat Group companies involved a total payment amounting to 0.19% in personnel costs(2) for the year. This year as well the level of litigation was particularly high in Brazil where final judgments, mainly relating to the interpretation of particularly controversial legislation, represented 89.1% of all final judgments handed down, and accounted for around 88.1% of the total payout made by the Group. However, within the specific context of Brazil, these final judgments were not exceptional in nature or in number.
(1) (2)
This comment refers to GRI-G3.1 indicators EN28, HR9, SO7, PR2, PR4, PR7, PR8 and PR9. Data refers to Fiat Group personnel costs including Chrysler data for the full year.
239
Environmental dimension
Waste generation and management
Fiat Group worldwide (tons)
Fiat Group
2011(1)
Plants Waste generated Non-hazardous waste Hazardous waste Total waste generated of which packaging Waste disposed Waste-to-energy conversion Treatment Sent to landll Total waste disposed Waste recovered Total waste recovered waste recovered waste sent to landll
FGA 15 440,778 16,114 456,892 49,140 15,604 5,147 934 21,685 435,207 95.3% 0.2%
Chrysler (4) Maserati 16 437,765 3,337 441,102 20,735 905 3,720 13,489 18,114 422,988 95.9% 3.1% 1 416 26 442 323 52 52 390 88.2% -
Ferrari 2 8,274 3,020 11,294 757 7,941 129 8,070 3,224 28.5% 1.1%
Fiat Powertrain 9 69,205 9,437 78,642 7,089 1,426 6,855 42 8,323 70,319 89.4% 0.1%
Magneti Marelli 69 81,091 10,885 91,976 13,222 2,544 7,956 8,999 19,499 72,477 78.8% 9.8%
Teksid 6 661,151 5,993 667,144 1,887 1,833 1,969 516,474 520,276 146,868 22.0% 77.4%
Comau 13 3,070 649 3,719 523 27 495 791 1,313 2,406 64.7% 21.3%
Chrysler others 19 102,948 1,153 104,101 3,423 997 3,354 6,198 10,549 93,552 89.9% 6.0%
150 1,804,698 50,614 1,855,312 97,099 23,336 37,489 547,056 607,881 1,247,431 67.2% 29.5%
2010
Plants
(2)
148 1,650,257 61,754 1,712,011 90,982 21,609 43,936 515,434 580,979 1,131,032 66.1% 30.1%
15 482,192 24,726 506,918 52,076 17,531 8,832 22,411 48,774 458,144 90.4% 4.4%
17 341,160 4,350 345,510 11,574 2,208 15,345 17,553 327,957 94.9% 4.4%
2 5,660 3,316 8,976 744 6,076 135 6,211 2,765 30.8% 1.5%
7 71,052 14,089 85,141 8,185 1,128 13,338 431 14,897 70,244 82.5% 0.5%
68 81,000 10,563 91,563 14,148 1,818 6,446 9,495 17,759 73,804 80.6% 10.4%
6 572,804 3,225 576,029 750 1,019 1,177 461,460 463,656 112,373 19.5% 80.1%
12 3,108 666 3,774 497 13 729 556 1,298 2,476 65.6% 14.7%
20 92,714 758 93,472 2,586 100 5,033 5,601 10,734 82,738 88.5% 6.0%
(1)
Waste generated Non-hazardous waste Hazardous waste Total waste generated of which packaging Waste disposed Waste-to-energy conversion Treatment Sent to landll Total waste disposed Waste recovered Total waste recovered waste recovered waste sent to landll
Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
(2)
2009
Plants
(3)
113 1,007,897 50,161 1,058,058 62,594 18,110 46,926 332,860 397,896 660,162 62.4% 31.5%
13 451,344 17,821 469,165 34,406 12,230 12,523 20,822 45,575 423,590 90.3% 4.4%
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
2 6,168 3,409 9,577 784 5,795 651 6,446 3,131 32.7% 6.8%
7 72,149 15,058 87,207 12,018 2,228 13,223 104 15,555 71,652 82.2% 0.1%
67 84,922 10,604 95,526 13,227 2,730 12,672 12,551 27,953 67,573 70.7% 13.1%
6 389,422 2,699 392,121 1,421 880 2,179 297,814 300,873 91,248 23.3% 75.9%
17 3,394 518 3,912 357 42 453 918 1,413 2,499 63.9% 23.5%
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Waste disposed Waste-to-energy conversion Treatment Sent to landll Total waste disposed Waste recovered Total waste recovered waste recovered waste sent to landll
(4) Data includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations.
Appendix
Waste generated Non-hazardous waste Hazardous waste Total waste generated of which packaging
(3) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011.
240
Appendix
Further details
2011(1)
Plants Withdrawal Groundwater Municipal water supply Surface water Other Total water withdrawal Discharge Surface water Public sewer systems Other destinations Total water discharge
Comau 13 53 69
2 7,256
16
538
3,039
3,644
122
1 1,813
81 5,107 4 5,192
15
178
15
178
84
967 3 970
84
2010 (2)
Plants Withdrawal Groundwater Municipal water supply Surface water Other Total water withdrawal Discharge Surface water Public sewer systems Other destinations Total water discharge 148 10,113 22,838 1,144 103 34,198 15 2,973 9,502 541 17 633 6,524 1 2 13 2 367 93 7 1,679 1,807 68 996 2,123 250 103 3,472 6 3,062 877 353 12 58 77 20 343 1,822
13,016
7,157
15
460
3,486
4,292
135
2,165
5,072 3 5,075
15
123
15
123
12
1,276 2 1,278
12
2009 (3)
Data includes Chrysler Group for the full year.
(2) (1)
Plants Withdrawal Groundwater Municipal water supply Surface water Other Total water withdrawal Discharge Surface water Public sewer systems Other destinations Total water discharge
1 2 14
2 286 93
7 1,412 1,808
17 62 94
Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
13,753
16
379
3,220
156
Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011.
(4) Data includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations.
(3)
16
121 30 151
16
2,865 87
12
2,952
12
241
Fiat Group Automobiles Chrysler Maserati Ferrari Fiat Powertrain Magneti Marelli Teksid Comau Chrysler others
Fiat Group Automobiles Chrysler Maserati Ferrari Fiat Powertrain Magneti Marelli Teksid Comau Chrysler others
Fiat Group Automobiles Chrysler Maserati Ferrari Fiat Powertrain Magneti Marelli Teksid Comau Chrysler others
Fiat Group Automobiles Chrysler Maserati Ferrari Fiat Powertrain Magneti Marelli Teksid Comau Chrysler others
Fiat Group Automobiles Chrysler Maserati Ferrari Fiat Powertrain Magneti Marelli Teksid Comau Chrysler others
Fiat Group Automobiles Chrysler Maserati Ferrari Fiat Powertrain Magneti Marelli Teksid Comau Chrysler others
(1)
Figures take into account worst level registered for all plants in each sector.
Appendix
242
Appendix
Further details
2011(1)
Plants Electricity Natural gas Other fuels Other energy sources Total energy consumption from renewable sources
FGA 15
Chrysler(4) 16
Fiat Powertrain 9
Magneti Marelli 69
3,894,850 5,605,383 2,872,018 11,267,887 16,346 4,784,884 820,695 11,568,098 17,693,965 16.2% -
1,518,891 3,200,871 360,454 851,221 64,455 698,243 269,864 2,577,588 4,386,411 20.7% 18.0%
2010 (2)
Plants Electricity Natural gas Other fuels Other energy sources Total energy consumption from renewable sources 148 21,150,638 19,396,487 967,709 7,705,409 49,220,243 8.6% 15 17 1 27,596 29,027 56,623 2 399,952 309,179 136,610 845,741 0.1% 7 68 6 2,534,121 1,186,899 876,296 133,479 4,730,795 28.6% 12 111,280 77,313 2,963 58,505 250,061 0.4% 20 3,927,868 2,987,965 10,021 1,625 6,927,479 4,049,988 5,340,619 2,962,295 10,564,539 7,941 5,480,061 789,205 12,500,285 16,694,363 13.5% 1,474,349 3,284,865 367,850 911,420 27 70,461 789,118 316,806 2,631,344 4,583,552 15.8% 17.1%
2009 (3)
Plants Electricity Natural gas Other fuels Other energy sources Total energy consumption from renewable sources 113 11,039,675 5,412,100 646,346 6,975,769 24,073,890 11.8% 13 3,841,686 2,715,381 6,531 5,555,795 12,119,393 7.0% n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1 25,524 20,521 46,045 2 375,014 313,852 60,796 749,662 0.1% 7 67 1,441,012 3,010,456 385,945 883,127 27 89,776 830,199 337,886 2,657,183 4,321,245 10.3% 16.3% 6 2,223,300 1,017,611 543,265 122,708 3,906,884 26.2% 17 122,683 75,663 6,747 68,385 273,478 0.4% n.a. n.a. n.a. n.a. n.a. n.a. n.a.
2011(1)
Plants Direct emissions Indirect emissions Total CO2 emissions
Fiat Group
Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
(3) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (4) Data includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations.
2010 (2)
Plants Direct emissions Indirect emissions Total CO2 emissions 148 1,096,622 3,243,389 4,340,011 15 166,874 846,831 1,013,705 17 531,756 857,322 1,389,078 1 1,548 3,213 4,761 2 17,345 62,138 79,483 7 20,638 208,058 228,696 68 55,673 350,656 406,329 6 148,256 157,248 305,504 12 4,541 19,478 24,019 20 149,991 738,445 888,436
2009 (3)
Plants Direct emissions Indirect emissions Total CO2 emissions 113 360,588 1,722,037 2,082,625 13 152,830 922,813 1,075,643 n.a. n.a. n.a. n.a. 1 1,151 2,749 3,900 2 17,607 50,442 68,049 7 21,653 223,244 244,897 67 55,117 333,569 388,686 6 107,485 168,640 276,125 17 4,745 20,580 25,325 n.a. n.a. n.a. n.a.
243
2011(1)
Plants Non-renewable sources Natural gas Coal Diesel LPG Other (HS and LS fuel oil) Total non-renewable sources Renewable sources Biomass Photovoltaic Solar-thermal Total renewable sources Total direct energy consumption from renewable sources
Fiat Ferrari Powertrain 2 309,293 309,293 941 941 310,234 0.3% 9 360,454 360,454 360,454 -
Comau 13
Chrysler others 19
150 19,186,507 906,707 91,471 58,832 47,876 20,291,393 2,398 72 2,470 20,293,863 -
87,537 2,356,045 920 1,436 46,510 89,893 2,402,555 1,442 1,442 89,893 2,403,997 0,1%
2010 (2)
Plants Non-renewable sources Natural gas Coal Diesel LPG Other (HS and LS fuel oil) Total non-renewable sources Renewable sources Biomass Photovoltaic Solar-thermal Total renewable sources Total direct energy consumption from renewable sources 148 19,395,056 816,472 76,118 63,688 11,430 20,362,764 2,494 72 2,566 20,365,330 15 2,962,295 7,848 93 2,970,236 13 72 85 2,970,321 17 10,564,539 10,564,539 10,564,539 1 27,596 27,596 27,596 2 309,179 309,179 856 856 310,035 0.3% 7 367,850 27 367,877 367,877 68 911,420 6,876 62,176 1,409 981,881 981,881 6 1,186,899 816,472 59,823 2,063,194 2,063,194 12 20
(1)
Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
(2)
2009 (3)
Plants Non-renewable sources Natural gas Coal Diesel LPG Other (HS and LS fuel oil) Total non-renewable sources Renewable sources Biomass Photovoltaic Solar-thermal Total renewable sources Total direct energy consumption from renewable sources 113 5,412,100 494,903 67,507 74,889 5,477 6,054,876 900 3,642 4,542 6,059,418 0.1% 13 2,715,381 2,390 37 4,104 2,721,912 72 72 2,721,984 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1 20,521 20,521 20,521 2 313,852 313,852 900 900 314,752 0.3% 7 385,945 27 385,972 385,972 67 883,127 10,423 74,410 1,373 969,333 3,570 3,570 972,903 0.4% 6 1,017,611 494,903 47,920 442 1,560,876 1,560,876 17 75,663 6,747 82,410 82,410 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
(3) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (4) Data includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations.
Appendix
244
Appendix
Further details
2011(1)
Plants Electricity Non-renewable sources Renewable sources Total electricity Thermal energy Non-renewable sources Renewable sources Total thermal energy
FGA 15 2,020,811 1,874,039 3,894,850 4,001,180 4,001,180 783,617 783,617 8,679,647 21.6%
Fiat Powertrain 9
Magneti Marelli 69
985,414 2,410,620 533,477 790,251 1,518,891 3,200,871 454,963 454,963 207,472 207,472
Other energy sources 1,089,289 Non-renewable sources Renewable sources Total other energy sources 1,089,289 Total indirect energy consumption 27,962,383 from renewable sources 16.9%
2010 (2)
Plants Electricity Non-renewable sources Renewable sources Total electricity Thermal energy Non-renewable sources Renewable sources Total thermal energy Other energy sources Non-renewable sources Renewable sources Total other energy sources Total indirect energy consumption from renewable sources 148 16,914,538 4,237,530 21,152,068 6,452,052 6,452,052 1,250,791 1,250,791 28,854,911 14.7% 15 2,365,100 1,684,888 4,049,988 4,570,353 4,570,353 909,623 909,623 9,529,964 17.7% 17 5,340,619 5,340,619 789,205 789,205 6,129,824 1 29,027 29,027 29,027 2 399,952 399,952 100,602 100,602 35,152 35,152 535,706 7 68 6 1,180,794 1,353,327 2,534,121 133,479 133,479 2,667,600 50.7% 12 110,278 1,002 111,280 58,505 58,505 169,785 0.6% 20 3,927,868 3,927,868 3,927,868 -
1,057,928 2,502,972 416,420 781,893 1,474,348 3,284,865 527,504 527,504 272,404 272,404
(1) Data includes Chrysler Group for the full year. (2)
Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
2009 (3)
Plants Electricity Non-renewable sources Renewable sources Total electricity Thermal energy Non-renewable sources Renewable sources Total thermal energy Other energy sources Non-renewable sources Renewable sources Total other energy sources Total indirect energy consumption from renewable sources 113 8,197,957 2,841,716 11,039,673 5,611,068 5,611,068 1,363,729 1,363,729 18,014,470 15.8% 13 2,996,408 845,277 3,841,685 4,515,102 4,515,102 1,040,621 1,040,621 9,397,408 9.0% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1 25,524 25,524 25,524 2 375,014 375,014 47,212 47,212 12,684 12,684 434,910 7 67 6 1,200,182 1,023,118 2,223,300 122,708 122,708 2,346,008 43.6% 17 121,585 1,098 122,683 68,098 68,098 287 287 191,068 0.6% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011.
(4) Data includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations.
(3)
1,168,144 2,311,100 272,868 699,355 1,441,012 3,010,455 572,666 572,666 285,282 285,282
245
Fiat Group Automobiles Chrysler(4) Maserati (5) Ferrari Fiat Powertrain (5) Magneti Marelli Teksid Comau Chrysler Others Fiat Group
Fiat Group Automobiles Chrysler(4) Maserati Ferrari Fiat Powertrain Magneti Marelli Teksid Comau Chrysler others Fiat Group
Dust
Fiat Group worldwide (tons) 2011(1) 0.2 36.4 0.1 20.8 8.6 66.1 2010(2) 0.2 34.1 0.1 18.7 9.7 62.8 2009(3) 0.1 n.a. 0.2 11.5 0.1 n.a. 11.9
Fiat Group Automobiles Chrysler(4) Maserati Ferrari Fiat Powertrain Magneti Marelli Teksid Comau Chrysler others Fiat Group
Fiat Group Automobiles Chrysler (4) Maserati Ferrari Fiat Powertrain Magneti Marelli Teksid Comau Chrysler others Fiat Group
(1)
Data includes Chrysler Group for the full year. Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
(2)
2011
Plants CFC HCFC Halon Methyl bromide Other CFC fully halogenated Total
Maserati 1 1 1
2010 (6)
Plants CFC HCFC Halon Methyl bromide Other CFC fully halogenated Total 148 581 16,657 102 2 17,342 15 4,766 4,766 17 n.a. n.a. n.a. n.a. n.a. n.a. 1 38 38 2 n.a. n.a. n.a. n.a. n.a. n.a. 7 561 1,215 1,776 68 20 10,412 65 2 10,499 6 226 37 263 12 n.a. n.a. n.a. n.a. n.a. n.a. 20 n.a. n.a. n.a. n.a. n.a. n.a.
(3) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011. (4) Data includes Chrysler Group assembly and stamping facilities to be consistent with Fiat Group Automobiles scope of operations. (5) Maserati and Fiat Powertrain are not equipped with paint shops. (6)
Appendix
246
Appendix
Further details
Social dimension
Employees in numbers(1)
Workforce gender distribution by region
Fiat Group worldwide
2011
workforce by region (no.) % men % women
2010(3)
workforce by region (no.) % men % women workforce by category (no.)
2011
% men % women workforce by category (no.)
2010(3)
% men % women
(2)
Employees are divided into four main categories: hourly, salaried, professional and manager. Professional encompasses all individuals that perform specialized and managerial roles (including professional and professional expert under the Fiat S.p.A. classication system and mid-level professional and senior professional under the Chrysler Group classication). Manager refers to individuals in senior management roles (including those identied as professional masters, professional seniors and executives under the Fiat S.p.A. classication system, and senior managers and above under the Chrysler Group classication).
2011
workforce by sector (no.) % men % women workforce by sector (no.)
2010(3)
% men % women
Fiat Group Automobiles Ferrari Maserati Chrysler Group Magneti Marelli Comau Fiat Powertrain Teksid Other businesses (4) Total
59,714 2,695 714 55,687 34,804 14,457 12,552 7,865 8,533 197,021
85.1 89.1 83.6 81.9 73.4 93.6 87.8 95.8 54.5 82.1
14.9 10.9 16.4 18.1 26.6 6.4 12.2 4.2 45.5 17.9
57,611 2,721 696 51,623 34,269 12,216 12,453 7,275 10,560 189,424
85.1 88.2 84.6 82.0 74.6 93.8 87.9 96.0 60.8 82.2
14.9 11.8 15.4 18.0 25.4 6.2 12.1 4.0 39.2 17.8
Employees by country
Fiat Group worldwide (%)
Nationality of managers
Fiat Group worldwide
Italy US Brazil Mexico Poland Canada Argentina Germany France Spain Venezuela Other countries Total (no.)
2011 31.8 19.7 19.5 6.1 5.7 4.8 2.6 1.3 1.4 0.7 0.5 5.9 197,021
2010 33.4 19.0 18.7 5.7 6.6 4.8 2.1 1.4 1.4 0.8 0.5 5.6 189,424
(3)
2011 Italian American Brazilian French German Polish Spanish Belgian Other nationalities Total (no.)
managers (no.)
% of total managers
(3) Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. (4)
Other businesses include holding companies and companies operating in publishing, communications and services and other companies; Centro Ricerche Fiat and Elasis only for 2010.
247
Unlimited-term
% women % men
Fixed-term
% women
Total
% men
79.1 Part-time
% women % men
16.9 Full-time
% women % men
2.9 Part-time
% women % men
1.1 Full-time
% women
81.8 55.7 -
18.2 44.3 -
2011
workforce by length of service (no.) % men % women workforce by length of service (no.)
2010
(1)
2011
% women workforce by age (no.) % men % women workforce by age (no.)
2010(1)
% men % women
% men
Talent attraction
Fiat Group worldwide
Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A. Workforce mapped corresponded to 99.9% of Group workforce.
2011
workforce by education (no.) % men % women workforce by education (no.)
2010(1)
% men % women
New graduates recruited (no.) Traineeships (no.) Scholarships (no.) Scholarships ( million)
(2)
University degree or equivalent (3) High school Elementary/middle school Not tracked (4) Total (2)
(3) Calculation subject to approximation resulting from the comparison of academic qualications among different countries. (4)
Men Women
2011 72 53
(5)
Cases for which it is not possible to report level of education as the data is not always tracked in Group information systems, particularly with reference to hourly employees.
Appendix
248
Appendix
Further details
Category
Hourly Employees at 31/12/2010 New Hires Departures change in category scope of operations Hourly at 31/12/2011 96,994 15,710 (14,886) (449) 41,363 138,732 Salaried Employees at 31/12/2010 New Hires Departures change in category scope of operations Salaried at 31/12/2011 21,823 5,034 (3,352) (8,766) 14,824 29,563
Professional Employees at 31/12/2010 New Hires Departures change in category scope of operations Professionals at 31/12/2011
Manager Employees at 31/12/2010 New Hires Departures change in category scope of operations Managers at 31/12/2011
(1) Only for turnover calculation: Chrysler Group was consolidated in the workforce scope by June 2011; turnover includes Chrysler Group New Hires and Departures exclusively for the second half of 2011.
27 (3) 24
249
41 to 50 years Employees at 31/12/2010 New Hires Departures scope of operations Employees at 31/12/2011
Over 50 years Employees at 31/12/2010 New Hires Departures scope of operations Employees at 31/12/2011
Gender
(1)
Men Employees at 31/12/2010 New Hires Departures scope of operations Men employees at 31/12/2011
Women Employees at 31/12/2010 New Hires Departures scope of operations Women employees at 31/12/2011
Turnover by age does not cover employees that changed age group between 2010 and 2011.
(2)
(3)
(4)
(5)
Refers to the number of calendar days of absence (including Saturdays, Sundays and holidays) due to accidents that occurred to employees (hourly, salaried and professional) resulting in absence from work for more than three days, excluding the day the accident occurred. Excluded from the calculation are: days of absence due to accidents that occurred while travelling to and from work, including by private transport.
(3) Data includes Chrysler Group for the full year. (4) Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
(4)
2009 48 66 114
(5)
(5) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011.
Appendix
250
Appendix
Further details
In Canada, notice of termination regulations vary by province. In Ontario, where the majority of the Canadian workforce is employed, notification must be given within four weeks of the actual termination, for locations with employment of 50 or more. The remaining Chrysler Canada employees are located in Alberta and Quebec, where the maximum notice requirement is ten weeks for employees with more than ten years of service. At unionized sites and/or plants in the United States and Canada, the level of union involvement is normally defined by the collective bargaining agreement signed between the company and the union and applicable at site level, and usually also sets out the information and consultation procedures to be followed in such circumstances. At non-unionized sites, it is common practice to make a company-wide announcement of organizational changes relating to outsourcing to all employees, giving reasonable prior notice of the operation. In Mexico, companies are required to notify the Secretariat of Labor and Social Welfare and the union prior to any mass employee layoffs or plant closures. However, no notification period is explicitly defined in Mexican labor law. In Venezuela, notice of termination of employment varies according to an employees years of service, e.g., from a minimum of one weeks notice for employees with one to six months of service, to a maximum of three months notice for employees with ten or more years of service.
(1) Data includes Chrysler Group for the full year. (2)
Data restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
(3) Data restated to exclude companies demerged into Fiat Industrial S.p.A. It does not include Chrysler Group, as Chrysler Group LLC was rst formed in mid-year 2009. Accordingly, 2009 data is not comparable to 2010 and 2011.
252
Appendix
Glossary
Glossary
A
Active Safety Belts:
system that, once a crash is imminent, acts both on the buckle and the webbing of the belt by tensioning and positioning in order to enhance the safety belt body retention.
H
Hybrid Electric Vehicle (HEV):
propulsion from the combination of a combustion engine and traction electric motors powered by a high-voltage battery. The charging of the battery is accomplished by the combustion engine and the vehicles kinetic energy captured by the regenerative brake function.
B
Battery Electric Vehicle (BEV):
propulsion from a traction electric motor fueled by a high-voltage battery. The drive range of the vehicle is limited by the battery energy capacity.
Hydraulic Hybrid:
propulsion from the combination of a combustion engine in series with hydraulic motors powered by a high-pressure hydraulic accumulator. The charging of the accumulator is accomplished by the combustion engine and the vehicles kinetic energy captured by the regenerative brake function.
Brake Prell:
device that detects potentially hazardous situations: if the driver suddenly lifts his foot from the accelerator pedal, the system immediately brings the brake pads into contact with the discs, enabling more rapid braking in an emergency.
I
ISO 9001:
international standard which species requirements for a quality management system designed to meet customer and other stakeholder needs.
E
Electric Hand/Park Brake:
parking brake electrically activated by a switch and controlled by an electronic control unit, acting on vehicle brakes by means of a mechatronic device (cable puller, active caliper, etc.).
ISO 11228:
international standard which species recommended limits for manual lifting and carrying and provide guidance on the assessment of several task variables, allowing the health risks for the working population to be evaluated.
ISO 14001:
international standard Management Systems. establishing requirements for Environmental
ISO 14040:
international standard which describes the principles and framework for Life Cycle Assessment (LCA).
ISO 14044:
international standard which species requirements and provides guidelines for Life Cycle Assessment (LCA).
EN 1005:
European standard which establishes requirements for safety of machinery and human physical performance.
ISO 26000:
international standard, published in November 2010, which identies the main issues that organizations need to focus on to demonstrate their commitment to social responsibility.
EN 16001:
European standard establishing requirements for Energy Management Systems.
ISO 50001:
international standard establishing requirements for Energy Management Systems.
ISO/TS 16949:
international standard which, in conjunction with ISO 9001, denes the quality management system requirements for the design, development, production, installation and service of automotive-related products.
253
L
Lane Departure Warning (LDW):
device that alerts the driver when the vehicle is about to drift out of its lane.
R
Range-extended Electric Vehicle:
enhancement of BEV where the vehicle drive range is extended by providing a small combustion engine, primarily to charge the battery.
Rear Camera:
provides a wide-angle view of the area immediately behind the vehicle, giving the driver greater peace of mind before backing up. Also aids in lining up a trailer with the vehicles towing hitch, when so equipped. The image is automatically displayed when the gear is shifted into reverse.
M
Magnetorheological Suspension Control:
system whereby the motion of each wheel is controlled by a shock absorber whose damping characteristics are produced by a magnetorheological uid whose dynamic properties, and viscosity in particular, change when an electrically controlled magnetic eld is applied.
O
OHSAS 18001:
international standard establishing requirements for Occupational Health and Safety Management Systems.
S
Select Speed Assist:
system that allows the driver to select a desired speed and maintains that speed through rough or hilly terrain.
P
ParkSense Front/Rear Assist:
system that uses sound waves to detect nearby obstacles at parking speeds to help the driver maneuver in tight spaces. Ultrasonic sensors in the front/ rear bumper detect the proximity of objects in or near the front/rear path of the vehicle, and warn the driver of vehicle distance from objects via visual indicators in the forward eld of view as well as via audible warning signals.
Skyhook:
automatic system that continuously adjusts shock absorbers to changing road surfaces to guarantee ideal damping under all driving conditions.
Smart Alternator:
battery recharging device that uses an intelligent control unit to reduce utilization of power from the engine to the minimum required (also known as Intelligent Alternator).
Pedestrian Detection:
system that detects the presence of a pedestrian in front of the vehicle and alerts the driver with a visual or audible warning.
V
Vehicle Dynamic Control (VDC):
system that uses sensors to monitor wheel slip: if a loss of traction is detected, the system engages to restore dynamic stability and directional control.
V2X Communications:
vehicle to infrastructure and vehicle-to-vehicle communication systems.
allows high-voltage battery charging with grid power by means of plugging in. There is usually an on-board/off-board charger that enables the link to the grid.
Pre-collision Enhance:
system designed to reduce the severity of an accident. Upon detecting an impending collision, this system can tighten the seat belts, adjust seat positions including rear seats, raise folded rear headrests, close the sunroof (if it detects possible rollover collision), and close any open windows, if necessary.
254
Appendix
Statements of assurance
Statements of assurance
This Sustainability Report has been audited by SGS Italia S.p.A., an independent company that provides verification, testing, analysis and certification of goods, services and systems. The scope of the audit is reported in the following letter. The Report has also been submitted to GRI which conducted an Application Level Check (A+) of the GRI-G3.1 guidelines.
255
Appendix
256
Appendix
Key
SR = 2011 Sustainability Report AR = Annual Report at 31 December 2011 ARCG = Annual Report on Corporate Governance, February 2012 n.a.
GRI-G3.1 indicators
Coverage Publications References (pages)
1.
1.1 1.2
2.
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
3.
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8
Report parameters
Prole Reporting period Date of the last report Reporting cycle Contact point for questions regarding the report Report scope and boundary Process for dening report content Boundary of the report Limitations on the scope or boundary of the report Reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities SR SR SR SR SR SR SR SR AR 230-231 231 230 262 75, 232-235 230-231 230-231 230-231 237-259
257
Coverage
Publications
References (pages)
Data measurement techniques and the bases of calculations Re-statements of information provided in earlier reports Signicant changes from previous reporting periods GRI-G3.1 content index Table identifying the location of the Standard Disclosures in the report Assurance of the report External assurance
SR SR SR SR SR
4.
4.1 4.2 4.3 4.4 4.5
Externally developed economic, environmental, and social charters or principles Memberships in industry associations Stakeholder engagement List of stakeholder groups Basis for identication and selection of stakeholders Approaches to stakeholder engagement Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics
ARCG SR SR SR SR SR
5.
Economic performance EC1 Direct economic value generated and distributed EC2 Financial implications and other risks and opportunities due to climate change EC3 Coverage of the organizations dened benet plan obligations EC4 Signicant nancial assistance received from government Market presence EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at signicant locations of operation EC6 Policy, practices, and proportion of spending on locally-based suppliers EC7 Procedures for local hiring Indirect economic impacts EC8 Development and impact of infrastructure investments and services provided for public benet EC9 Understanding and describing signicant indirect economic impacts
Appendix
258
Appendix
Coverage
Publications
References (pages)
Environmental
Management approach Materials EN1 Materials used EN2 Percentage of materials used that are recycled input materials EN3 EN4 EN5 EN6 EN7 Energy Direct energy consumption by source Indirect energy consumption by source Energy saved Initiatives to provide energy-efcient or renewable energy-based products and services Initiatives to reduce indirect energy consumption and reductions achieved SR 93-98, 107-108, 113-116, 125, 132-133 107-108, 211 107-108 128-129, 242-243 128-129, 244 128-129 16-20, 79-89, 93-106 28, 30, 32, 128-129, 138-139, 204 119-121, 240 120 121, 240 125-127 125-127 126-127 27, 125-127 126 130-131, 242 134, 138-139 28-30, 130-131, 134-139 119, 245 27, 118, 245 120, 240 122-123, 239 119, 121 122-124, 239 126-127 16-22, 79-85, 88-89, 93-111, 203-204, 209 107-111 238 132-137 113
SR SR SR SR SR SR SR
Water EN8 Total water withdrawal by source EN9 Water sources signicantly affected by withdrawal of water EN10 Percentage and total volume of water recycled and reused Biodiversity EN11 Location and size of land owned, leased, managed in protected areas and areas of high biodiversity value EN12 Description of signicant impacts on biodiversity EN13 Habitats protected or restored EN14 Strategies for managing impacts on biodiversity EN15 Number of IUCN Red List species and national conservation list species EN16 EN17 EN18 EN19 EN20 EN21 EN22 EN23 EN24 EN25 Emissions, efuents, and waste Greenhouse gas emissions Other indirect greenhouse gas emissions Initiatives to reduce greenhouse gas emissions Emissions of Ozone Depleting Substances Other air emissions Water discharge Total waste by type and disposal method Total number and volume of signicant spills Hazardous waste Biodiversity and habitats affected by the organization's discharges
SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR
Products and services EN26 Initiatives to mitigate environmental impacts of products and services and extent of impact mitigation EN27 Percentage of products sold and their packaging materials that are reclaimed by category Compliance EN28 Monetary value of nes and total non-monetary sanctions for non-compliance with environmental laws and regulations EN29 Environmental impacts of transport EN30 Environmental protection expenditures and investments
Social
Labor practices Management approach LA1 LA2 LA3 LA4 LA5 LA6 LA7
(1)
SR SR SR SR SR SR SR SR
143-171, 184-191 143-146, 246-247 146, 248-249 151-152 188 250 183 174-175, 249-250
Total workforce by employment type, contract, and region, broken down by gender Total number and rate of new employee hires and employee turnover by age, gender and region Benets provided to full-time employees that are not provided to temporary or part-time employees by signicant locations of operation Percentage of employees covered by collective bargaining agreements Minimum notice period for operational changes Percentage of workforce represented in health and safety committees Rates of injuries, occupational diseases/illnesses, lost days, and absenteeism, and total number of work-related fatalities by region and by gender(1)
259
Coverage
Publications
References (pages)
LA8 LA9
Education, training and risk-control programmes in place to assist employees and their families regarding serious diseases/illnesses Health and safety topics covered in agreements with trade unions
SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR
168, 176-183 183, 188 152-155 152-155, 166 32, 147-149, 247 14, 143-145, 160-166, 246-247 150-151 167-168 62-65, 160-166, 184-191, 211-214 62-65, 212-214 213-215 153-154, 215 65-66, 160-164 62-65, 184-186, 190, 212-215 62-65, 213-215 62-65, 213-215 62, 154 220-221, 238 64-65 65
LA10 Employee training by gender and by category LA11 Programmes for skills management and lifelong learning that support the continued employability of employees LA12 Percentage of employees receiving performance and career development reviews by gender LA13 Composition of governance bodies and breakdown of employees by gender, age group, minority group membership, and other indicators of diversity LA14 Ratio of basic salary and remuneration of women to men by employee category, by signicant locations of operation LA15 Return to work and retention rates after parental leave, by gender Human rights Management approach HR1 HR2 HR3 HR4 HR5 HR6 HR7 HR8 HR9 HR10 HR11 Agreements that include human rights clauses Suppliers and contractors screened on respect of human rights Total hours of employee training on human rights Incidents of discrimination and actions taken Risks to the right to exercise freedom of association and collective bargaining Operations identied as having risk for incidents of child labor Operations identied as having risk for incidents of forced or compulsory labor Security personnel trained on human rights Violations of the rights of indigenous people Operations subject to human rights reviews and/or impact assessments Grievances related to human rights led, addressed and resolved through grievance mechanisms Society Management approach SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs SO2 Monitoring of the risk of corruption SO3 Employees trained in anti-corruption policies and procedures SO4 Actions taken in response to incidents of corruption SO5 Positions and participation in public policy and lobbying SO6 Contributions to political parties SO7 Legal actions for anti-competitive behavior, anti-trust SO8 Signicant nes and sanctions for non-compliance with laws and regulations SO9 Operations with potential or actual negative impacts on local communities SO10 Prevention and mitigation measures in operations with potential or actual negative impacts on local communities Product responsibility Management approach
SR ARCG SR SR SR SR SR SR SR SR SR SR
219-221 69, 74-75 62-64, 219-227 62-64, 213-215 62, 153 62-64 66-69, 80-86 69 238 238 70-73, 219-221 70-73, 219-221
SR ARCG SR SR SR SR SR SR SR SR SR
PR1 Health and Safety impacts of products and services PR2 Incidents of non-compliance with regulations on health and safety of products and services PR3 Product and service information PR4 Incidents of non-compliance with regulations and voluntary codes on product and service information PR5 Practices related to customer satisfaction PR6 Programs for adherence to laws, standards and voluntary codes related to marketing and advertising PR7 Non-compliance with regulations and voluntary codes concerning marketing communications PR8 Substantiated complaints on breaches of customer privacy PR9 Fines for non-compliance with laws and regulations
21-25, 80, 93-98, 105-106, 193-196, 205-209 70, 73-75 21-25, 80, 85-86, 105-111, 193-199 238 108, 209 238 205-209 208 238 238 238
Appendix
260
Appendix
www.delicious.com/ fiatgroup
www.friendfeed.com/ fiatgroup
www.digg.com/ Fiatgroup
www.linkedin.com/ company/fiat-spa
FLICKR
www.facebook.com/ FiatS.p.a
www.it.reddit.com/ new
www.flickr.com/ photos/fiatgroup
www.twitter.com/ fiatspa
Fiat on social networks: For Fiat Group, new media is not only an information source that is monitored but it is also actively used as a platform through which the Group and its brands can clearly and effectively communicate their message. Social networks are used as an integrated part of the Groups overall communication strategy to provide relevant and up-to-date corporate information to the public.
Appendix
261
CORPORATE GOVERNANCE
http://www.atspa.com/en-us/sustainability/Pages/Homepage.aspx
Appendix
262
Appendix
Contacts
Contacts
Head Office Via Nizza, 250 - 10126 Turin (Italy) Tel. +39 011 00.61111 website: www.fiatspa.com Investor Relations Tel. +39 011 00.62709 Fax +39 011 00.63796 email: investor.relations@fiatspa.com Sustainability Tel. +39 011 00.63908 email: sustainability@fiatspa.com Other contacts: www.fiatspa.com/en-us/sustainability/Pages/contatti.aspx Press Office Tel. +39 011 00.63088 Fax +39 011 00.62459 email: mediarelations@fiatspa.com
263
This document is printed on eco-responsible Cocoon Silk paper (150 gsm for internal pages and 300 gsm for cover) produced by Arjowiggins Graphic. Cocoon Silk is an extra-white coated paper made from 100% recycled bers with EU Flower certication (FR/011/003).
By using this paper, rather than a non-recycled paper, the environmental impact was reduced by:
1,669
kg of landll
701
kg of CO2
5,011
km travel in the average European car
21,151
liters of water
5,091
kWh of energy
1,763
kg of wood
Appendix
264
Appendix
Illustrations and creative design Atelier Roger Pfund, Communication visuelle S.A. Geneva, Switzerland Graphic design Sunday Turin, Italy Editorial coordination Sunday Turin, Italy Printing Graf Art - Officine Grafiche Artistiche Venaria (TO), Italy Printed in Italy March 2012
Fiat S.p.A. Registered Office: 250 Via Nizza, Turin, ITALY Share Capital: 4,465,600,020 Turin Companies Register/ Tax Code: 00469580013